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CHARTER, CONSTITUTION 
BY-LAWS AND RULES 



OF THE 



New Orleans Cotton Exchange 

EMBRACING ALL 

Rules Governing the Ex-Warehouse, To Arrive and Future Contract 

Cotton Business in the New Orleans Market and Business 

in Cotton Seed and Cotton Seed Products ; also the 

Rules Relating to Standard of Compressing and 

Inspection of Cotton for Export, etc., etc. 



INCLUDING REVISIONS UP TO JANUARY 24, 1920 



Press of The L. Graham Co., Ltd. 

430-432 Common Street, 

Xew rleans. 



1^2-° J 



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LIBRARY OF CONGRESS 

MAR 11 1922 

DOCUMENTS ^.W.ilON 



EXTEACT FROM THE MIXUTES 

OF THE 

BOAED OF DIEECTOES 

OF 

THE NEW OELEANS COTTON EXCHANGE, 

January 26, 1920. 

Resolved, That the report of the Committee on Eules embodying 
a compilation and codification of the Charter, Constitution, By- 
Laws and Eules of this Exchange to January 24th, 1920, as 
presented to this Board in printed form, be and is hereby approved; 

Resolved, That the Eules as expressed and enumerated in said. 
report be and are hereby adopted and promulgated, together with 
the Charter, Constitution and By-Laws as submitted. 

Edw. S. Butler^ President. 

Henry G. Hestee^ Secretary. 



CONTENTS 



CHAETER 1- 7 

COXSTITUTIOIsr 11- 16 

BY-LAWS 19- 31 

EX-WAREHOUSE RULES 35- 45 

TO ARRIVE RULES 49- 67 

FUTURE RULES ri-136 

REGULATIOXS OF SECRETARY OF AGRICUL- 
TURE 141-166 

UXITED STATES COTTOX FUTURES ACT. 167-177 

COTTOX SEED AXD COTTOX SEED PRODUCTS 181-190 

GEXERAL RULES 193-203 

RULES OF ORDER 205-207 

PRESS SUPERVISIOX 211-216 

LEYEE IXSPECTIOX 219-222 

STAXDARD OF COMPRESSIXG AXD IXSPEC- 
TIOX OF COTTOX FOR EXPORT 225-227 



vi INDEX. 

Admission of Members — Constitution^ Article V 12 

Admission of Partners during the absence of other partners — 

By-Laws, Article XVI 28 

Amendment of By-Laws — Constitution, Article X 16 

of Charter — Charter, Article VIII 6 

of Constitution — Constitution, Article X 16 

of Eules— By-Laws, Article IV 22 

Annual Dues — Constitution, Article VI, By-Laws, Article XVI, 

General Kules 2-6 13-28-29-193-194 

Annual Elections — By-Laws, Article 1 19 

Charter, Article VI 4 

Constitution, Article III 12 

Members in arrears cannot vote — Constitution, Article VI 

and General Kule 3 13-193 

Annual Reports — ^By-Laws, Article III 21 

Appeals — On cotton to arrive, Eule 21, Sec. 2 59 

Committee of, By-Laws, Articles III-X, General 

Eule 13 21-24-25-197 

Committee on Classification (Inspection), Future Eules 

5-10; General Eule 13 76-80-81-197 

Decisions of Board of Examiners — Future Eule 16 91 

Decisions of Appeal Committee on Classification, Future 

Eule 14, Sec. 4 86 

Duties of Appeal Committee on Valuation, Future Eule 14, 

Sec. 6 -, 87 

Failed Mem,bers' right to appeal, Future Eule 60 133 

To Arrive — Appeals, Arbitration decisions, Eule 21 59-60 

From Decision Board of Classers, Future Eules 5-10....76-80-81-82 
From, Decision Committee on Valuation, Future Eule 14, 

Sees. 6-7 87-88 

General Appeal Committee, General Eule 13, Sec. 3 199 

Limit of time for, By-Laws, Article XIV, Future Eule 16, 

Sec. 5 27-91 

On claims arising from Spot Sales, Eule 18 45 

On Fines instituted on Calls, Eules of Order 10 207 

Purpose and duties of Committee of, By-Laws, Article X 24-25 

Eejections, no appeal on (Inspection), Future Eule 8 79 

Samples to be used, Future Eule 16, Sec. 5 91 

Applications — For Membership, Constitution, Articles IV-V.... 12 

By-Laws, Articles V-XIII 22-26 

General Eules 12 196 

For Visiting Membership — Constitution, Article IV, See. 2, 

General Eules 12 12-196 

Of parties engaged in handling cotton, Future Eule 4 75-76 

Arbitration — Arbitrators, Appeal from, decision of, By-Laws, 

Article IX 24 

Duties of, By-Laws, Article IX 24 

Fees of, By-Laws, Article IX 24 

How appointed, By-Laws, Article III.... 24 

Committee— By-Laws, Articles III-IX 21-24 

Cotton Seed and Cotton Seed Products 181-182 

Decisions Binding, By-Laws, Article IX 24 

Failed Members, right to arbitrate, Future Eule 59 133 

To Arrive Cotton, Arbitrations on disputes, Eule 21 59-60 

Guaranteed Through Cotton, Eule 36 67 

Settlement of claims of members, By-Laws, Article XIV.... 27 

Assessments— Constitution, Article VI 13 

General Eules 2 193 



INDEX. vii 

Of settlements by grade differences, Future Kules 

15, Sec. 2 88 

Eules of Order 2-6-7 205-206 

Attorney, Powers of (See Powers of Attorney). 

Average Prices — Compensation for Grades on Average Prices, 

Ex-Warehouse Eule 6 39 

How computed. Future Eule 63 135 

Settlement in case of failure of margin depository, Future 

Eule 51, Sec. 2 127 

Bagging — Amount used to cover bales, Eule 8 40 

Excess, how ascertained, Eule 8 40-41 

Unmerchantable, Eule 9 42 

Balloting — On election of members, By-Laws, Article XIII 26 

On officers (Annual election). Charter, Article VI.... 4-5 

and By-Laws, Article 1 19 
Bands — (See also ties and standard of compressing). 

Cutting for Sampling Supervision, Eule 8 213 

Eem,oved for inspection, Future Eule 13, Sec. 4 84 

Betting— Eules of Order 9 206 

Bills— Invoice for Spot Cotton, Eule 2 35 

For Classing and Inspecting, Future Eule 28 103 

On ring settlem,ents, Future Eule 48, Sec. 2 124 

Penalty for failure to pay, Future Eule 28, Sec. 2 104 

Payment of, Future Eule 26 102 

When rendered, Future Eule 21, Sec. 5 95 

Board of Classers — Arbitrations by, on deliveries other than 

future contracts, Future Eule 33 106-107 

Additional Classers — Future Eule 8, Sec. 4 80 

Duties of. Futures Eules, 8, 14, 16 79-80-86 

How appointed. Future Eule 5.... 76 

Quorum of. Future Eule 8 79 

Board of Cotton Examiners (U. S.) Future Eule 17 91 

Board of Directors — Absence of President and Vice President, 

By-Laws, Article II 20 

Amendments of Eules, By-Laws, Article IV 22 

Annual Eeport, By-Laws, Article III, Sec. 2 21 

Appointment of Nom,inating Committee, By-Laws, Article 

I, Sec. 4 19 

Standing and other committees, By-Laws, 

Article in, Future Eule 52 21-128 

Secretary, By-Laws, Article III 21 

Other employees, By-Laws, Article III.... 21 
Committee to carry out certification rules. 

Future Eule 5 76 

Inspector-in-Chief, Future Eule 7, Sec. 1 78 

Inspectors of Election, Charter, Article VI, 

By-Laws, Article 1 4-19 

Board of Classers, Future Eule 8, See. 1 79 

Clerk, Board of Classers, Future Eule 9 80 

Assistant Inspectors, Future Eules 4-7, Para- 
graph 3 75-77 

Weighers, Future Eule 4 75 

Licensed Warehouses, Future Eule 4 75 

Chief Supervisor and Assistants, Press 

Supervision Eules 1 and 2 211 

Chief Levee Inspector and Assistants, Levee 

Inspection Eules 1 and 2 219 



INDEX. 

Ai)proval of Applications for Membershi}), Constitution, 

Article V, By-Laws„ Article XITI 12-26 

Balloting for, By-Laws, Article I 19 

Building — Assessment for Construction, Article VI, Sec. IC 13 

Charter, Provisions, Article VI 4-5 

Classers, additional, Future Kule 8, See. 4 80 

Commissions, Committee's Decision, General Rule 13 197 

Calls, Hours of, Future Rule 46." 114 

Closing of Exchange, By-Laws, Article II, Future Rule 38, 

Sec. 3 2U-109 

Declare memberships at an end, Constitution, Article VI, 

Sec. 2; Future Rule 60 14-133 

Dues and Assessments unpaid, Constitution, Article VI; 

General Rule 2 13-193 

Election of. Charter, Article VI; Constitution, Article III; 

By-Laws, Article 1 4-5-12-19 

Failure to elect, By-Laws, Article 1 19 

Failed Member, disqualified for re-instatement. Future 

Rule 61 134 

Failed Member, member not filing claim against. Future 

Rule 56 131-132 

Failed Member, re-instatement of, Future Rule 62.... 134-135 

Fines and fees unpaid. Constitution, Article VI; General 

Rule 2 A 14-193 

Inspection, Classification, etc., charge for. Future Rule 28 103 
Inspectors of Election, Charter, Article VI; By-Laws, 

Article I 4-19 

Levee Inspectors, and Chief, Levee Inspection Rule 1—. 219 

Licenses, Future Rule 4 75 

Meetings, By-Laws, Article II 20 

Powers of Attorney to visit Exchange and trade, form 

of 129-130-228 

Power of Attorney, By-Laws, Article XVI; Future Rule 

54 ". 28-29-129-130 

Proxies to vote for, Charter, Article VI 5 

Opening and Closing, By-Laws, Article II, Sec. 3, and 

Future Rule 38, Sec. 3 20-109 

Nominating Committee, cannot serve on, By-Laws, Article 

I, Sec. 4 19-20 

Misconduct, Article VIII, Constitution; By-Laws, Article 

15 15-28 

Rules, Adoption of, By-Laws; Article IV 22 

Salary of Board of Classers and clerk of, Future Rules 8-9 79-80 

" of Inspector-in-Chief, Future Rule 7 78 

" of Chief Supervisor, Press Supervision Rules 1-2.. 211 

" of Chief Levee Inspector, Levee Inspection Rules 

1-2 219 

" of Assistant Chief, and Asst. Supervisors, Press 

Supervision Rule 1 211 

" of Assistant Levee Inspectors, Levee Inspection 

Rules 1-2 219 

Supervisory Committee's report on Failures, Future Rule 

61 134 

Vacancies in Board, Charter, Article VI; By-Laws, Article 



INDEX. IX 

XIX 5-30 

Vacancies, Board of Classers, Future Eule 8, Sec. 4 80 

Violations of Constitution, Bv-Laws. etc., Constitution, 

Article VIII -- lo 

Brokerage — On contracts, Future Rule 47 114—115-116-117 

On Spot Cotton, Rule 20 45 

Bucket Shops— General Rule 18 200-201 

Bulletins — (See under Posting). 

Calls— Future Rule 46, Rules of Order 10 114-206-207 

Appeals on. Future Rule 46 114 

Disputes on. Future Rule 46 114 

Duty of Superintendent, Future Rule 46 114 

First offer to buy or sell, Future Rule 46 114 

Fines imposed on, Rules of Order 10 206-207 

Hours of. Future Rule 46 114 

Manner of Conducting, Future Rule 46 114 

Rules Governing, Rules of Order - 206-207 

Certificated Cotton— Bills for certification, Future Rule 28 103-104 

Certificates invalidated, Future Rule 20, Sec. 2 93 

Cost of. Future Rule 28 103-104 

Damage by fire, Future Rule 27 102-103 

Stored only in licensed warehouse, Future Rule 29 105 

Charges — (See Fees and Charges). 

Charter 1-7 

Claims — Against a deceased Member, Future Rules 60-64.. ..133-135-136 

Against a failed Member, Future Rules 55-57 130-132 

Against a member who has not announced his failure, 

Future Rule 56 131 

Arising out of Transactions, By-Laws, Article XIV; 

General Rule 13 27-198 

For Fraudulent packing, Future Rules 29-31 105 

For irregularities in cotton. Rule 28 65 

Loss in weight, Rules 27-32-35-37 65-66-67 

On sales of "spot cotton. Rules 15-16-17-18-19 44-15 

On sales to arrive cotton. Rule 11 52-53 

Classers — Additional Future Rule 8, Sec. 4 80 

Classification of Cotton for Contract Delivery — (See Inspection). 

Clerks — By-Laws, Article XVI; General Rule 6 28-29-194 

Closing of Exchange— By-Laws, Article II; Future Rules 38, 

Sec. 3 20-1 09 

Commission Law — Future Rule 47 114-115 

COMMISSION LAW— EULINGS ON: 

Number 1. Commissions must be paid on round transaction 
dating from its initiation; not from its comple- 
tion 117 

" 2. No arrangements affecting net amount of commis- 
sion permissible 117 

" 3. Members emploved by firms cannot confer benefit 

of m.embershii-) rates on the employers 117 

4. Monthly salaries for solicitinof, and variable month- 
ly charges for use of wires prohibited. 117 

** 5. Commendam partnership _. 117 

** 6. Special partners, etc 117 

*' 7. Salaried agents— terms of employment 117-118 

8. Rebates to members and others not permissible 118 

9. No waivers of commission on account of errors 118 



Niii: 



INDEX. 

ber 10. Corporations in cotton business whose managing of- 
ficer is a member are entitled to minimum rates 118-119 

11. Only regular articled firm^ of which one partner is 

a member of the Exchange entitled to minimum 
commissions 119 

12. Managers of branch offices cannot participate in 

profits of offices unless members of firm 119 

13. Maximum commission charge for delivery of cotton 

on contract 119 

14. Full commission charged on order from a non-mem- 

ber for a full member^ where former neglects to 

give latter 's name 119 

15. Comm,issions not chargeable for transfer where 

party carrying contracts disposes of his business 

to another 119 

16. Constituents of suspended firms 119 

17. Where the same firm does business in New Orleans 

and elsewhere under different titles 119-120 

18. Offsets of a firm's contracts against those in name 

of their agent cannot be made for commission 
purposes 120 

19. Membership by a paid em,ployee of a firm does not 

extend to such firm advantages of such member- 
ship 120 

20. Firms or private wire houses cannot pay an oper- 

ator's salary at an interior point 120 

21. Same as ruling 9 , 120 

22. Part use of wires may be furnished on payment of 

fixed monthly rental 120 

Fixed tolls per hundred bales for use of wire pro- 
hibited 120 

Branch offices, regulations for establishment of same 120-121 
Mem.bers leasing private wires, duties of same 121 

23. When a private wire may not transmit messages 

free of charge 121 

Future brokerage firms prohibited from paying for 
sending messages relating to the market from 
one party to another 121 

24. Wire houses cannot pay for telephone lines from, 
correspondents' offices for use of customers 121 

25. How Contracts should be carried to obtain rebate 
on non-members ' business 121 

26. When employees' salaries may be increased 121-122 

27. Salaried employees forbidden to receive rebate 
commission 122 

28. Salaries of operators at relay stations, etc 122 

29. When a firm may not employ a m,ember at a stipu- 
lated salary 122 

30. Broker may bear cost of telegraph or telephone 
messages 122 

31. Interest on margins not allowed 122 

32. Honorary members entitled to members' commis- 
sion rates 122 

33. Rate of commission chargeable on contracts of firm 
transferred to non-memberB 122 



INDEX. XI 

Number 34. Brokers prohibited from, accepting services of tele- 
graph operators or person having other regular 

occupation 122-123 

'' 35. Membes may bear cost C. N. D. service 123 

'' 36. Brokers prohibited from sharing expenses of oper- 
ating cotton exchanges at interior points 123 

'' 37. Paid employees of exchange or boards of trade not 
eligible as representatives or agents of brokers 

in securing business 123 

'* 38. Member cannot contribute use of share of Ex- 
change Stock 123 

" 39. Employing non-member with condition of dividing 

losses on business secured by agent 123-124 

Committees — Arbitration, By-Laws, Articles III-IX 21-24-25 

Appeals on Arbitration, By-Laws, Articles III-X 21-24-25 

Appeal Comi,mittee on Classification, Future Kules 5-10, 

General Eule 13 76-80-81-197 

Appeal Coro.mittee on Staple allowance — Future Rule 14 87 

Board of Classers, Future Rules 5-8 76-79-80 

Books, By-Laws, Article XXI 31 

Building, iGeneral Rule 13 - 197 

Certifying to election or non-election of applicants, etc.. 

General Rule 19 201 

Commissions, Future Rule 53; General Rule 13 128-197 

Cotton Seed and Cotton Seed Products 181-182 

Credits, By-Laws, Article XX 30 

Exchange Quotations, General Rule 13 197 

Finance, By-Laws, Articles III- VIII; General Rule 15....21-23-199 
Floor Future Rule 40; General Rule 13; Rules or Order 

1-10 111-205-206-207 

Freight Discrimination, General Rule 13 197 

Futures, Future Rule 52; General Rule 13 128-197 

General Appeal, General Rule 13 197 

General Arbitration, General Rule 13 197 

Information and Statistics, Bv-Laws, Articles III- VI; Gen- 
eral Rule 13 \ 21-22-197 

Insurance, General Rule 13 196 

Legislation, General Rule 13 198 

Membership, Constitution, Articles VIII-IX; Bv-Laws, 

Articles III- V-XIII-XV ; General Rules 18 15-16-21-22-26- 

28-200-201 

Nominating Com.mittee, By-Laws, Article I, Sec. 4 19 

Protection of Shippins:, General Rule 13 197 

Rules, General Rule 13 197 

Spot Quotations, Bv-Laws, Article VII; Future Rule 15; 

General Rule 16 23-88-200 

Supervision and Deliveries, Future Rules 5-6; General 

Rule 13; Supervision 3; 76-77-196-211-212 

Supervisorv, Future Rules 52-53-55-56-57-61-62; General 

Rule 13 128-129-130-131-132-134-135-197 

Valuation of Staple Cotton — Future Rule 14, Section 5.... 86 

Weather, General Rule 13 197 

Complaints— General Constitution, Article VIII; By-Laws, 

Article XV 15-28 

Against parties licensed by Exchange — ^Future Rule 6, 

Paragraph 3 77 

Floor Committee, Rules of Order 1-10 205-206 

Contracts— By-Laws, Article XVIII 30 



xii }XDEX. 

Above or below Bid or Offered price, Future Rules 41)46 110-114 
After prescribed hours, entered into, Future Rule 39, Sec. 

3 iia 

Amendment of Rules, By-Laws, Article IV 22 

Binding, when, Future Rule 48 124 

Closing, Future Rule 48 125- 

Cotton to arrive (see to arrive Rules). 

Decimals, Future Rule 40 Ill 

Disputes, Future Rule 46 114 

Entered into upon last day of trading, Future Rule 23.... 99 

Failure to deliver or receive, Future Rule 25 100-101 

Final settlement of, Future Rule 21, Sec. 2 94 

Form of Contract, Future Rule 1 71-72 

Form of Order to Buy or Sell, Future Rule 2 74 

Form of Memorandum slip. Future Rule 45 112-113' 

Giving up name of principal, Future Rule 48, Sec. 3 125 

Holidays, falling due on, By-Laws, Article XVIII; Future 

Rule 38 30-109 

Legal demand for delivery. Future Rules 21-22 93-96' 

Notices shall be accepted. Future Rule 22 96 

Notice of demand of delivery, Future Rules 21-22 93-96" 

Offers to buy or sell, Future Rules 40-46 110-111-114 

Offsets and substitutions. Future Rules 25, Sec. 2, 48 101-125 

Parties to Contracts must be Members — By-Laws, Article 

XVIII 30' 

Priority of bids. Future Rule 40 110 

Payment for deliveries on. Future Rule 21, See. 5; 26.... 95-102 

Reporting sales, Future Rule 41 Ill 

Reporting transactions to principals. Future Rule 42 112' 

Seller to furnish slips, Future Rule 45 112 

Signing of slips, Future Rule 45 112' 

Slips must be signed by members, Future Rule 45 112 

Substitution of nam.es. Future Rule 25, Sec. 2 100' 

Trading between members of same firm, Future Rule 44.... 112 

Termination of, dependent on delivery, Future Rule 48.... 124 

Verbal Order to buy or sell. Future Rules 1-2 73-74 

Verbal, margins may be called on. Future Rule 49 ]25 

When trading shall cease. Future Rule 23 99 

Controversies, between members, Bv-Laws, Articles IX-XIV 24-27 

Co-Partnerships, General Rule 4, Sec. 2...' 194 

Cotton to Arrive, (See to Arrive Rules). 

Cotton Seed and Cotton Seed Products. 

Arbitration fees, by whom raid, Rule 1 181 

Arbitration, Committee on. Rule 1 181 

Affidavits, Rule 16 185-186- 

Brokerage, by whom, paid. Rule 6 183 

Barrels for export. Rule 50 190 

Committee — how appointed. Rule 1 181 

(^'ommittee — its duties, Rule 1 181 

Committee — to act as arbitrators. Rule 1 181 

Committee — fees when serving as arbitrators. Rule 1 181 

Claim, form of. Rule 17.. ' 185 

Claims, wlien to bf made. Rule 14 185 

Claims on C. I. F. Contracts, when to be made. Rule 15... 185 

Crude oil, how sold. Rule 19 186- 

Crude oil, how classed. Rule 20 186' 

Choice refined oil, RuIp 24 187 

Cotton seed cake, pounds per ton. Rule 28 188- 



IXDEX. xiii 

Cotton seed cake, how classed, Rule 29 188 

Choice cake, Eiile 29 - 188 

Cake, how packed, Rule 32 188 

Cotton seed meal, measurement and classification, Rule 33 188 

Cotton seed, carload, Rule 38 189 

Cotton seed, how classed. Rule 39 , 189 

Cotton seed, prime. Rule -10 189 

Cotton seed, off, Rule 41 - - 189 

Contracts, based upon shipside delivery, Rule 43 190 

Contracts, F, O. B. terms, how construed. Rule 44 190 

Contracts, seller 's responsibility, Rule 45 19U 

Cooperage, Rule 49 '. 190 

Deliveries below grade, buyers' rights, Rule 4>n 190 

Linters, classification of, Rule 1 181 

Measurem.ent of crude oil. Rule 18 18(i 

Meal, choice, Rule 34 189 

Meal, prime, Rule 35 - 189 

Meal, off. Rule 36 189 

Meal, how packed, Rule 37 189 

Off oil, Rule 22_ 187 

Off cake. Rule 31 - 188 

Off refined oil. Rule 26 187 

Private settlements not prohibited, Rule 1 181 

Payment of non-resident buyers. Rule 4 183 

Payment, when due, Rule 5 183 

Prime crude oil, classification, Rule 21 187 

Prime refined oil. Rule 25 187 

Prim.e cake, Rule 30 188 

Quotations, by whom furnished, Rule 1 181 

Rules, when applicable, Rule 8 183 

Refined oil, how classed. Rule 23 187 

Reclammations, limit of time, Rule 46 190 

Sales, how made. Rule 2 182 

Seller's liability, Rule 15 185 

Soap stock, Rule 27...... 187 

Seed, delinted, Rule 42 189 

Samples, how drawn. Rule 47 190 

Sales, terms of, Rule 3 182 

Telesrams, when open, Rule 7 183 

Terms, Rule 9 183 

Tanks, when to be furnished. Rule 10 184 

Tanks, when to be loaded. Rule 11 184 

Time contracts. Rule 12 184 

Tim.e contracts, duty of mill. Rule 13 184 

Deceased Members, Arbitrations and appeals. Future Rules 

58-59-60 132-133 

Claims against, Future Rules 58-59-60-64 132-133-135 

Contracts closed, if the only Exchange menxber of his firm, 

Future Rule 64 ! 135 

Executor, duties and privileges of, Future Rules 58- 

59-60-64 132-133-135 

Notice of death shall be posted, Future Rule 64 135 

Sole seller or buyer of contracts. Future Rule 64 135 

Statements of claims against, Future Rules 58-59-60- 

64 132-133-135 

Deficiency in Weight, Settlements for, Future Rule 25 100-101 

Delivery of Cotton on Contract — 

Appeals on Classification, Future Rules 10-16-25... .80-81-91-100-101 



xiv INDEX. 

Board of Classers, duties of in relation to, Future Eule 8 79 

Certificates of grades, how and when issued, Future 

Eule 20 92-9S 

Classification, how procured. Future Eules 16-17 89-90-91 

Compressed and shipmarked cotton. Future Eulel3, Sees. 

6-7-8 85 

Dan}.aged by fire, smoke or water, Future Eule 27 102-103 

Delivery, what constitutes a good. Future Eule 21... .93-94-95-96 
Exceptions, under what conditions made. Future Eule 33 106-107 
False Packed, seedy, sandy, gin-cut, etc.. Future Eule 17 91 

Fees, Future Eules 10, Sec. 6; 14, Sec. 7-28 81-87-103-104 

Final settlement for. Future Eule 21, See. 2 94 

Fire, cotton damaged, Future Eule 27 102-103 

General Provisions governing. Future Eule 3 74-75 

Holidays, affecting deliveries. Future Eule 38 109 

Inspection Bureau, may be used by trade. Future Eule 33 106-107 
Inspection and classification, how procured, Future Eule 

16 89-90-91 

Interference with Inspection, Weighing, etc. — Future Eule 

35 108 

Legal demand for cotton, Future Eule 21, Sec. 5 91 

License, Warehousemen, Inspectors, Weighers, etc., must 

have, Future Eule 4 75-76 

Lim.it of tender. Future Eule 1, Sec. 4-17 73-91 

Margin may be called any time before delivery — Future 

Eule 50, Sec. 2 127 

Mixed packed cotton, sandy, dusty, Future Eule 13 84-85 

Notices, Future Eules 22-23 96-97-98-99 

Notice or certificate of deliverer. Future Eule 3 74-75 

Notice Day, Future Eule 22 96 

Payment for, Future Eule 21, Sec. 5-26 95-102 

Penalty for non-delivery of receipts. Future Eule 25 100-101 

Eeeord of. Future Eule 24 100 

Eejections, Bales subject to. Future Eule 17 91 

Eejections may be submitted to Board of Examiners, 

Future Eule 12, Sec. 2 ..: 83 

Eeview (Appeal) of classification — Future Eule 25 101 

Samples, exposure of, Future Eule 10', Sec. 5 81 

Samples, ownership of, Future Eules 16-17-18 91-92 

Samples, delivery of, Future Eule 18 91-92 

Samples, preparation of, for classification. Future Eules 

3-12 74-75-83 

Sampling, Inspecting, etc., at E. E., Future Eule 13, Sec. 

9 85 

Sandy, Dusty, etc., Future Eule 13 „ 84-85 

Settlements, Future Eules 15-25 88-100-101 

Spot trade may use Inspection Bureau, Future Eule 33.. 106-107 

Staple cotton. Future Eule 14 86-87-88 

Staple cotton, Prem.ium for, Future Eule 14, Sees. 4-5-6.... 86-87 
Staple cotton. Fees for valuation. Future Eule 14, Sec.7.... 87 

Trading in current month, last day of, Future Eule 23.... 99 

To arrive, trade may use Inspection Bureau, Future Eule 

33 106-107 

Transferable notices. Future Rule 22 96-97-98-99 

Tender by deliverer on his own notice or certificate, 

Future Eule 3 74-75 

Transferable notice, price at which issued, Future Eule 22 96 

Type Standards, Future Eule 37 108-109 



INDEX. XV 

Valuation Sandy and Dusty cotton, Future Eule 15, Sec. 4 88 

Warehouse, what constitutes one, Future Kule 34 107-108 

Warehouse receipts, when and how issued, to be stamped. 

Future Eule 19 92 

Warehouse receipts, failure to deliver, etc., Future Eule 25 100 

Water, cotton damaged by. Future Eule 17 102-103 

Weights, allowances, Future Eule 21, Sec. 4 95 

Weight returns. Future Eule 11 82 

Delivery of Spot Cotton (See Cotton Sold Ex- Warehouse, Eules • 

governing transactions in). 
Depositories for Margins: 

Future Eule 50, Sec. 3 127 

Disputes Between Members: 

Arbitration of, By-Laws, Articles IX-XIV 24-27 

Arbitration, demand for, By-Laws, Article XIV 27 

On call, settled by party making call, Future Eule 46.... 114 

Other than on call, referred to Floor Committee^ Eules of 

Order, 1-3 205 

Submitting to m.embers present. Future Eule 40 110-111 

When referred to Committee on Futures, Future Eules 

41-53 111-128 

Dues Annual: 

Failure to pav and penalty. Constitution, Article VI; 

General Eule 2 13-193 

For clerks. Article XVI, By-Laws; General Eule 6....28-29-194-195 
Election: 

Annual, Charter, Article VI; Constitution, Article HI; By- 
Laws, Article 1 4-5-12-19 

Inspectors of Election, duties. Charter, Article Yl; By- 
Laws, Article 1 4-19 

Of members, Constitution, Article V; Bv-Laws, Articles 

V-XIII; General Eule 19 1 12-22-26-201 

Exchange Business and Property: 

Charter, Article VI; By-Laws, Articles I-III 4-5-19-21 

Expelled Members — Eeadmission — Constitution, Article IX 16 

Expulsion: 

Fon connection with a Bucket Shop, General Eule 18 200-201 

For General reasons. Constitution, Article VIII; General 

Eule 18 15-200-201 

For trading after hours, Future Eule 39, Sec. 2 110 

For Eeporting False Sales, Future Eule 41 Ill 

For Violating the Commission Law, Future Eule 47 116 

Ex-Warehouse — Sales of Cotton: 

Average price, compensation for grades on, Eule 5 39 

Allowances, how arrived at, Eule 13 43 

Bagging, amount used to cover bales, Eule 8 40-41 

Bagging, excess of, Eule 8 40-41 

Bagging, unmerchantable, Eule 9 42 

Buyers' right when cotton is in unmerchantable condition, 

Eule 10 42 

Brokers, duties of, purchasing for parties not members, 

Eule 12 43 

Contract of sale, when final, Eule 1 35 

Classing and grading by Exchange, Eule 3 36-37-38 

Commissions on buying and selling, Eule 20 .' 45 

Com,pressed bales, allowance on_, Eule 7 39 

Classing, inspecting and sampling, Eule 3 36-37-38 

Delivery, when completed, Eule 11 42 



xvi ]Xl)KX. 

Delivery, payment on account before. Rule 11 42 

Falsely or fradulently packed cotton, Rule 15 44 

Fees, Rule 3 36-37-38 

Guarantee of Exchange, Rule 3^ Sec. 2 37 

Grading and Classing by Exchange, Rule 3, Sec. 4 38 

Inspecting, Sampling and Classing, Rule 3 36-37-38 

Irregularities, claims for, Rule 15 44 

Limit of time for receipt, Rule 2 35 

Light-weight bales, Rule 6 39 

Merchantable condition, guarantee ofj Rule 10 42 

Members, duties of, when bujdng from or selling to jiarties 

not members, Rule 12 43 

Mutual agreem.ent as to receipt and delivery, Rule 2, 

Sec. 7 \ 36 

Payment, when due, Rule 2 35-36 

Patching uncompressed cotton. Rule 7, Sec. 6 40 

Reclamations, form in which must be presented. Rule 16 44 

Reclamation, arbitrations on, Rule 18 45 

Reclamations, limit of time for presenting, Rule 17 44 

Reclamations on false packed cotton stored in New Or- 
leans, Rule 19 45 

Reserve samples, examination of, Rule 3, Sec. 1 37 

Re-weigher, absence of buyer's, procedure, Rule 13 43 

Seller 's right when cotton not received, Rule 2 35 

Samples, when must be removed, Rule 3, Sec. 3 ^ 37 

Sampling, Inspecting and Classing, Rule 3 36-37-38 

Scales, testing of, Rule 14 44 

Tare, how ascertained, Rule 8 40-41 

Testing scales, Rule 14 44 

Ties, number and weight of, Rule 7. 39-40 

Weighing through Exchange, Rule 13 43 

Weighers, duties of Factor's and Buyer's, Rule 13 43 

Weighing by seller, Rule 13 43 

Failures: 

Voluntary notices of. Future Rule 55 130 

Forced notices of, Future Rule 56 131 

Record of claims. Future Rule 57 '. 132 

Rights of failed members, Future Rule 58 132 

Arbitrations on claims, Future Rule 59 133' 

Appeals on claims, Future Rule 60 133 

Schedule of failed members. Future Rule 61 134 

Re-instatement of failed members, Future Rule 62 134-135 

False Packed Cotton, Etc.: 

Ex-warehouse, Rule 15; (to arrive), Rule 11; Future Rules 

17-30 44-52-53-91-105 

Fees and Charges: 

Annual dues. Constitution, Article VI 13 

Arbitrations, By-Laws, Article 9; Cotton Seed Rule 1; 

General Rule 13, Sec. 2 24-181-198 

Appeals on arbitrations, By-Laws, Article X; General Rule 

13, Sec. 3 24-25-199 

Appeals on classification. Future Rule 10, Sec. 6 81 

Api)eal8 on valuation staple cotton. Future Rule 14, Sec. 7 87 

Brokerage on contracts. Future Rule 47 114-115-116-117 

Brokerage on spot cotton, Rule 20 45 

Classing and certificating for delivery, Future Rule 28.— 103-104 

Clerks, By-Laws, Article XVI; General Rule 6 28-29-194 

Classing on appeal. Future Rule 10, Sec. 6, 28 ....81-103-104 



INDEX. xvii 

Damaged by smoke or water, examinations of cotton, 

Future Eule 27 102 

Initiation, Constitution, Article VI 13 

Inspection for spot and to arrive trade. Future Rule 33 106-107 
Inspection for Contract delivery. Future Rule 28, Sec. 1.. 103-104 

Interference with inspection. Future Rule 35 108 

Opening inspected bales to ascertain sand. Future Rule 13 84-85 

Rejections, passing upon, Future Rule 28 103 

Sam.ples, failure to deliver to receiver, Future Rule 18—. 91 

Samples, lost or destroyed, Future Rule 36 108-109 

Staple cotton, valuation of, Future Rule 14 86-87 

Staple, premium for, Future Rule 14 :. 86-87 

Withdrawing from warehouse, Future Rule 20, Sec. 2 93 

Fictitious Names, Use of: 

Future Rule 22 99 

Finance Committee: 

By-Laws, Articles III-VIII; General Rule 15 21-23-24-199 

Fines: 

Betting or offering to bet, Rules of Order 9 206 

Calls on. Rules of Order 206-207 

Disorderly conduct on floor, Rules of Order 3 205 

Matching to fix prices of trade. Rule of Order 9 206 

Marking Board, etc.. Rules of Order 4 205 

Non-pavment of Annual dues or assessments. Constitution, 

Article VI; General Rule 2 13-193 

Non-paym.ent of fees, Constitution, Article VI 13 

Smoking, Rules of Order 8 206 

Split prices, Future Rule 40 110-111 

Trading after hours. Future Rule 39, Sees. 2-3 110 

Trading in puts and calls. Future Rule 39, Sec. 4 110 

Violations of By-Laws by representative of absent mem- 
ber, By-Laws, Article XVI 28-29 

Violations of decorum. Rules of Order 2 205 

Fire-Damaged Cotton: 

Future Rule 27 102-103 

Floor Committee: 

General Rule 13; Rules of Order, 1-2-3-4-5-6-7-8-9-10....197-205-206 

Floor Privileges: 

Constitution, Article IV; By-Laws, Article XVI, General 

Rules 10-11-12 12-28-29-195-196 

Forms: 

Classification returns, Future Rule 16, Sees. 5-17-20 91-92-93 

Contract, Future Rule 1 71-72 

Contract (Cotton to arrive). Rule 15 , 57 

Contract slips, Future Rule 45 113 

Of oath administered to Assistant Inspectors, Future 

Rule 6 77-78 

Of request for Inspection of cotton. Future Rule 15, Sec. 2 89 
Of request for supervision of cotton withdrawn from, ware- 
house. Future Rule 20, See. 3 93 

Order to buy or sell contracts. Future Rule 2 74 

Power of Attorney, for member to do business for another 

member, Future Rule 54 129 

Transfer o| contract. Future Rule 22 96 

Transferable notice, Future Rule 22 96 

Free on Board Cotton: — (See "To Arrive"). 

Futures, Committee on: 

Disputes referred to, Future Rule 53 128 



xviii INDEX, 

Future Quotations Committee: 

Duty when no sales reported, Future Eule 63 135 

Gin-Cut Cotton: 

Future Eule 17 91 

Gin-Fall Cotton: 

Future Eule 17 91 

Grade, Certificate of: 

Future Eule 20 92 

Grades of Cotton Deliverable on Contracts: 

Future Eules 15-17 88-91 

Holidays : 

Contracts falling due on, By-Laws, Article XVIII; Future 

Eule 38, Sees. 1-2 30-109 

How declared, By-Laws, Article II, See. 3; Future Eule 38, 

Sec. 3 20V-109 

Hours: 

Exchange (opening and closing), By-Laws^ Article II, 

Sec. 3; Future Eule 38, Sec. 3 : 20-10^ 

Trading after. Future Eule 40, Sees. 2-3 110 

Immature Staple: 

Future Eule 17 !.. 91 

Information and Statistics, Committee ot: 

By-Laws, Article III-VI; General Eule 13 21-22-197 

Initiation Fee: 

Constitution, Article VI; General Eules 2 13-193 

Inspection and Classification of Cotton for Contract Delivery: 

Absence of direction as to marking. Future Eule 16 89 

Absence of Member of Appeal Committee on Classifica- 
tion, Future Eule 10 82 

Absence of Member of Appeal Comm.ittee on Valuation, 

Future Eule 14, Sec. 8 88 

Additional Classers, Future Eule 8 80 

Allowance for staple. Future Eule 14 86-87-88 

Allowance for storage charges, Future Eule 21, Sec. 3.— 95 

Allowance for weight, Future Eule 21, Sec. 4 95 

Allowance on compressed cotton. Future Eule 13, Sees. 7-8 85 

Appeal from Classification, Future Eule 21, Sec. 2 94 

Arbitrations by Board of Classers other than deliveries 

on Future Contracts, Future Eule 33 106 

Bands, Eemoval of, Future Eule 13, Sec. 4 84 

Bill for certification charges. Future Eule 28, Sec. 2 104 

Bills in case of delivery on Saturdays, Future Eule 21, 

Sec. 5 95 

Bills for rejections. Future Eule 28, Sec. 2 104 

Board of classers, duties of. Future Eule 8 79-80 

Certificate of Grade (See Grade Certificate), Future Eule 

20 92-93 

Certification, General provisions governing. Future Eule 

3 74-75 

Charge for classing on appeal, Future Eule 10, Sec. 6.— 81 

Charge for Inspecting, etc.. Future Eule 28 103 

Charge for rejections. Future Eule 28 103 

Charge for appeal on staple valuation, Future Eule 14, 

Sec. 7 87 

Charge for staple valuation, Future Eule 14, Sec' 7 87 

Claims on Inspection Fund, Future Eule 31 105 

Classers, additional. Future Eule 8 80 

Classification, General provisions covering, Future Eule 3 74-75 



INDEX. Xii 

Classing, procedure in^ Future Eules 16-17 89-90-91 

Clerk Board of Classers, Future Eule 9 80 

Cotton not ready for, penalty, in case of, Future Eule 16 89 

Committee on Suprvision and Deliveries, Future Eules 

4-6 - * 75-76-77 

Compressed cotton. Future Eule 13, Sec. 6 85 

Damage by smoke or water, examination of, Future Eule 

27 102-103 

Deficiency in weight, settlement for, Future Eule 25 100-101 

Delivery complete when certificate of grade and ware- 
house receipt delivered. Future Eule 21, Sec. 1 93-94 

Dust and sand, cotton containing, valuation of. Future 

Eule 15, Sec. 4 ' 88 

Excess of sand, seed and dirt. Future Eule 17 91 

Expenses, receiver's share of, Future Eule 28, Sec. 1 103-104 

Failure to pay bills for Inspection, Future Eule 28, Sec. 2 104 

Failure to deliver certificates. Future Eule 21, Sec. 2.... 94 

False Packed, Gin-Cut, sandy, seedy, etc., Future Eules 

17-31 91-105-106 

False Packed, responsibility for, Future Eule 30 105 

Fire in warehouse, Future Eule 27 102 

Form of Classification returns. Future Eule 20 92 

Form of request for inspection, Future Eule 16, See. 2.... 89 

Gin fall cotton. Future Eule 17 91 

Grade certificate, Future Eule 20 92-93 

Grades, intermediary, Future Eule 15 88 

Grades used in classing, Future Eules 8, Sec. 3; 10, Sec. 

8; 37 79-81-108 

Im,mature staple, Future Eule 17 91 

Inspecting for sound and merchantable, Future Eule 12, 

Sec .2 83-84 

Insp'Bcting, Method of, Future Eules 12, Sec. 2; 16, 

Sec. 3 83-84-90 

Inspection, charge for, Future Eule 28 103-104 

Inspection Fund, Future Eules 31-32 105-106 

Inspection, General provisions covering. Future Eule 3-— 74-75 

Inspection, request for. Future Eule 16, Sec. 2 89-90 

Inspector-in-Chief (See under I). 
Inspectors (See under I). 

Interference with Inspection, Future Eule 35 108 

Liability of Inspection Fund of Exchange, Future Eules 

31-32 105-106 

Licenses, Future Eules 4-6 75-76 

Lost or destroyed samples, Future Eule 36 108 

Margin may be called at any time before delivery, Future 

Eule 50, Sec. 2 127 

Marking, absence of direction as to, Future Eule 16, 

Sec. 1 89 

Memorandum of class. Future Eule 16, Sees. 5-20 91-92-93 

Mixed Packed cotton, Future Eule 13 84 

Moisture, possible damage from. Future Eule 16, Sec. 4..- 90 

Notice of Grade, written, Future Eule 21, Sees. 1-2-5, and 

Eule 22 93_94^95_97 

Notification of holding transferable notice must be 

stamped. Future Eule 21, Sec. 5 95 

Plated cotton, Future Eule 17 91 

Priority of caims on Inspection Fund, Future Eule 32—. 102 



.XX INDEX. 

Perished staple, Future Rule 17 91 

Quarter grades, Future Rule 15, Sec. 3 88 

Re-baled cotton, Future Rule 17 91 

Recording of classification and weight, Future Rule 19, 

Sec. 2; 20, Sec. 2 92-93 

He-ginned cotton. Future Rule 17 91 

Ilejections, bales subject to, Future Rule 17 91 

]Re-packed cotton, Future Rule 17 91 

Request for inspection. Future Rule 16, Sec. 2 89 

Sani,ples (See under S). 

Sampling, method of. Future Rale 12 83 

Sand, Dust, Dirt, etc.. Future Rules 13-17 84-85-91 

Sand or dirt, cotton containing^ valuation of, Future Rule 

15, Sec. 4 : 88 

Settlement of contracts, Future Rule 25 100 

Settlements of grade differences to liquidate future con- 
tracts, Future Rule 15, Sec. 2 88 

Staple, allowance and premium for, Future Rule 14 86-87-88 

Staple, minimum length deliverable, Future Rule 1, Sees. 

2-17 72-91 

Staple, Perished or immature, Future Rule 17 91 

Staple, m.aximum premium allowed, Future Rule 14, Sec. 1 86 

Staple, right of appeal. Future Rules 8, Sec. 2; 14 79-77 

Staple, Valuation of. Future Rule 14, Sec. 5 86 

Storage charges. Future Rule 21, Sec. 3. 95 

Storage of certificated cotton, Future Rule 29 105 

Tags, Future Rules 11-12 82-83 

Time limit of, for making claims on Inspection Fund, 

Future Rule 31 105 

Transfer of certificated cotton, Future Rule 29 105 

Type Standards, Future Rule 37 r.... 108 

Valuation, Appeal Committee on, Future Rule 14, Sec. 6.... ' 87 

Valuation, Committee on. Future Rule 14, Sec. 5 87 

Unmerchantable cotton, Future Rule 17 91 

Warehouse receipts. Future Rules 19-21 92-93 

Warehouse receipts, Indorsement of, m,ust be witnessed. 

Future Rule 21, Sec. 1 ". 93 

Weighing (See under ''W"). 

Weight, deficiency in. settlement for, Future Rule 25, 

Sec. 1 100 

Inspection Bureau: 

Bills for Inspection, etc.. Future Rule 28, Sees. 2-3 104 

Committee on Supervision and Deliveries, duties of, Future 

Rules 4-6 75-76 

Certificate of Grade or written notice of grade, Future 

Rules 3-17-20-21 74-91-92-93 

Inspection, request for. Future Rule 16, Sees. 1-2 89-90 

May be used by trade in spots and to arrive. Future Rule 

33 107 

Organization of. Future Rules 6-7-8 76-77-78-79 

Samples, Retention of. Future Rule 18 91 

Samples, ownership of, Future Rule 18 91 

Weight, notation of on Warehouse receipts. Future Rule 

20. Sec. 2 92 

Inspection Fund: 

Claims against. Future Rules 31-32 105-106 



INDEX. XXI 

Constitution of, Future Eule 28, feec. 3 104 

False packed cotton, responsibility of, Future Eule 30 105 

Inspector-in-Cliief : 

Appointment of, Future Eules 5, 7, See. 1 76-78 

Assistant Inspectors, appointment of, Future Eule 7. Sec. 1 78 

Chairman Board of Classers, shall be. Future Eule 7, Sec. 1 78 
Cotton not ready for inspection shall report to Con\niittee 

on Supervision and Deliveries, Future EuJe 16 (3).— 89 
Damage by fire, smoke or water, duties in case. Future 

Eule 27 ■ 102-103 

Delivery of cotton sold ex-warehouse or to arrive. Future 

Eule 33 :. 106-107 

Duties, General, Future Eules 7, 8, 16 78-79-89 

Salary of. Future Eule 8, Sec. 1 79 

Inspectors: 

Duties of, Future Eules 7-11-12-16, Sees. 3-4 78-82-83-89-90 

Inspection of cotton, Future Eule 16, Sees. 3-4 89-90 

License, must be, Future Eule 4 75 

Oath required of. Future Eule 6 (5) 77 

Eejections by. Future Eule 12 •. 83-84 

Samples of bales rejected by, shall be preserved. Future 

Eule 12, Sec. 2 83-84 

Inspectors of Elections: 

Charter, Article VI; By-Laws, Article I, Sec. 2 4-19 

Interference With Inspection: 

Future Eule 35 108 

Intermediary Grades: 

Future Eule 15, Sec. 3 88 

Legislation, Committee on: 

General Eule 13 198 

Levee Inspection: 

Annual election of Inspectors, Eule 1 219 

Benefit of Eules allowed to non-members, Eule 14 222 

Certificates of condition of cargoes to be forwarded to 

ports of destination, Eule 7 220 

Chief Supervisor 's report to Supervision and Deliveries 

Committee, Eule 10 221 

Certificates of cotton unfit for shir»m,ent, Eule 11 221 

Duties and powers of President of Exchange, Eule 2 219 

Duties of Levee Inspectors, Eule 3 219 

Daily reports of cargoes, weather, etc., Eule 4 220 

Deck loads and receipts on shipboard of cotton in bad 

condition, Eule 5 220 

Election and term of office of Inspectors, Eule 1 219 

Fees on local shipments, Eule 12 222 

Fees on Transit cotton, Eule 13 222 

Interference with Inspectors on duty, Eule 9 .: 221 

Payments of inspection fees through brokers, Eule 12 222 

Salaries of Chief's Assistants, Eule 1 219 

Skidding receipts by steamboats, Eule 6.. 220 

Shipmasters refusing to facilitate Inspections, Eule 8 221 

Superintendent's duties relative to bills, Eule 12 222 

Liability of Exchange: 

Inspection Fund, Future Eues 31-32 105-106 

On false-packed, Future Eule 30 105 

Licenses: 

Cancellation, Future ^ule 4 (4) 76 



xxii INDEX. 

Issuanee of, Future Eule 4 75 

Parties engaged in handling cotton, Future Kule 4 75 

Sus]iension of, Future Eule 6 (4) 77 

Warehouse, of, Future Eule 4 (4) 77 

UMIT OF TENDERS— On Contracts, Future Eule 1, Sec. 4 73 

LIMIT OF FLUCTUATIONS— Future Eale 1-A 74 

Linters : 

Cotton seed products, Eule 1 (C) 181 

Loose Cotton: 

Sui)ervision Eules 7-10-11-12-13-18 213-214-215-216 

Lot Numbers: 

Future Eules 11-12-16 82-83-90 

Margins: 

Banks as depositories of margins, Future Eule 50, Sec, 3—. 127 

"Bid prices governing calls for, Future Eule 50, Sec. 1 127 

Certified checks for margins, Future Eule 51, Sec. 1 127 

Depository for. Future Eule 50, Sec. 3 127 

Disputes as to amounts due, Future Eule 51, Sec. 2 127-128 

Failure to deposit, Future Eule 50, Sec. 1 127 

Hours for depositing with Superintendent, Future Eules 

49-50 125-126-127 

Interest on mi,argins deposited (C. L. E. 31) 122 

May be called after ring is formed. Future Eule 48, Sec. 4 125 
May be called at any time before delivery, Future Eule 

50, Sec. 2 127 

Office of m.ember called, procedure when closed, or un- 
known, Future Eule 50, Sec. 1 126 

Original, Future Eule 49 125-126 

Eelease of. Future Eule 51, Sec. 2...: 127 

Eisks, at whose, Future Eule 51, Sec. 3 128 

Settlements on contracts closed because of failure to de- 
posit. Future Eule 50 127 

Verbal contracts may be called on, Future Eule 49, Sec. 6 125 

Marking Space on Bales: 

Eule 10 42 

Future Eule 13, Sec. 6 85 

Meetings: 

Board of Directors, By-Laws, Article 11 , 20 

Exchange, Constitution, Article X; By-Laws, Article IL... 16-20 

Members and Memberships: 

Admission of members. Constitution, Article V 12 

Applicants and applications for. Constitution, Article V; 

By-Laws, Article XIII; General Eule 12 12-26-196 

Bucket Shops, connection with. General Eule 18 200-201 

Charges against. Constitution, Articles VIII 15 

Circulars published by. General Eule 18, Sec. 2 201 

Com.mittee on, By-Laws, Articles III-V 21-22 

Complaints of members, By-Laws, Article XV 28 

Deceased members, Future Eule 64 135 

Duties of members, Constitution, Article VII 14 

Failed members, Future Eules 5'5-56-57-58-59-60- 

61-62 130-131-132-133-134-135 

Failure to pay fines, dues, awards, etc., Constitution, Ar- 
ticle VI; General Eule 2 13-193 

Initiation fees, Annual dues; Constitution, Article VI 13 

Misstatements published by, General Eule 18, Sec. 2 201 

Objectionable partnerships. General Eule 4, Sec. 2 



INDEX. xxm 

Partners of deceased mem.bers, General Eule 4 194 

Powers of Attorney, granted by, By-Laws, Article XVI; 

General Eule 6 28-29-194 

Qualifications for, Constitution, Article IV 12 

Reinstatei^.ent of failed, Future Rule 62..„ 134 

Request for revocation of visitor's car. General Eule 10.... 196 
Resignations from, Charter; Article IV; Constitution, Ar- 
ticle VIII; General Rule 5 4-15-194 

Settlement of claims of, By-Laws, Article XIV 27 

Share of capital stock, must hold at least one. Charter, 

Article IV 4 

Violations of decorum by. Rules of Order 205-206 

Writing or marking on Boards, General Rule 8 195 

Merchantable Cotton: 

Minimum-, weight for. Ex-warehouse Rule 6 39 

Memorandum of Class: 

Future Rules 3, 16; Sec. 5-17 74-90-91 

Mixed Packed Cotton: 

Future Rules 13-17 84-85-91 

Moisture; 

Future Rule 16, Sec. 4 90 

Nominating Committee: 

By-Laws, Article I, Sec. 4 19 

N,on-Members: 

Rights of, Constitution, Article VIII 15 

Notice Days: 

Future Rules 22-23 96-99 

Notices (See Transferable Notices). 

Oaths: 

On licensing Assistant Inspecotrs, Future Rule 6 (5) 77 

Offers to Buy or Sell: 

Acceptance of whole quantitv offered takes precedence, 

Future Rule 40 ". 110 

Disputes arising from, Future Rule 40 110 

Limit of Fluctuations, Future Rule 1-A 73 

On calls, Future Rule 46 114 

Split prices, Future Rule 40 (3) Ill 

When not made on business davs and prescribed hours, 

Future Rule 39, Sees. 2-3 .' 110 

When vacated, Future Rule 46 114 

Officers of the Exchange: 

Constitution, Article III; By-Laws, Article III 12-21 

Board of Directors (See under B), Charter, Article VL... 4-5 

President OSee under P), Charter, Article VI 4-5 

President pro tem, By-Laws, Articles II-III 20-21 

Vice President (See under V), Charter, Article VI; By- 
Laws, Article II 4-5-20 

Treasurer (See under T), Charter, Article VI; By-Laws, 

Article XII 4-5-25 

Treasurer pro tern.,, By-Laws, Article III 21 

Secretary (See under S), By-Laws, Article XI 25 

Officers: 

Closed, where notice is to be delivered. Future Rule 22.... 96 

Closed or unknown in case of margin call, Future Rule 50 126 

Members must have offices within half mile of Exchange 

for service of notice, etc., Future Rule 43 112 



^xiv 



INDEX. 



pffsets and Substitutions: 

Future Kule 25, Sec. 2; 48, Sec. 3 101-102-125 

Orders to Buy and Sell: 

Subject to By-Laws and Rules and to U. S. Cotton Futures 

Act, Future Rule 2 74 

priginal Margins: 

Future Rule 49 125 

Partnerships: 

By-Laws, Article 16, R. C. L. 5, General Rule 4, Sec. 2..28-117-194 
Parties to Contracts must be members of Exchange, By- 
Laws, Article 18 30 

Partners, admission of during absence of other partner, 

By-Laws, Article 16 28 

Penalty For (See also Fines) : 

Annual dues, assessments, fines, etc., non-payment of. Con- 
stitution, Article VI; General Rule 2; Rules of Order 

VI 13-14-193-205 

Comm.ission Law, Violation of. Future Rule 47, Sec. 6 116 

Deficiency from weights specified, Future Rule 25 100 

Disorderly conduct on floor, Rules of Order 1 to 10....205-206-207 
Failure to deliver certificate of grade and Warehouse re- 
ceipt, Future Rule 21, Sec. 2; 25 94-100-101 

Failure to deliver or receive cotton, Future Rule 25 100-101 

Failure of holder to notify drawer of notice, Future Rules 

22-24 97-100 

Failure to make final settlement on contracts, Future Rule 

21, Sec. 2-25 94-100 

Failure to pay classing and inspection bills. Future Rule 

28, Sec. 2 104 

Failure to pay dues. Constitution, Article VI, Sec. 2; 

General Rule 2 14-193 

Failure to qualify as member. General Rule 2 193 

Failure to qualify as Visiting Member, General Rule 2.... 193 

Fictitious names, use of. Future Rule 22 (8) 99 

Interference with inspection and weighing. Future Rule 35 108 

Margins, failure to deposit, Future Rule 50 (2) 126-127 

Non-payment of annual dues, fines, assessments, etc., 
Constitution, Article VI; General Rule 2; Rule of 

Order 6 : 13-193-205 

Non-payment of fees of Board of Classers, Constitution, 

Article VI, Future Rule 28, Sec. 2.... 14-104 

Non-paym,ent of fees of Appeal Committee on Classifica- 
tion, Constitution, Article VI, Future Rule 28 14-104 

Omitting to enter claim on Record of Failures, Future 

Rules 56-57 '.. 131-132 

Representatives of members, misconduct of, By-Laws, Ar- 
ticle XVI (5) , 29 

Samples, failure to deliver, Future Rule 18 91 

Trades in contracts at split prices, Future Rule 40 (3) Ill 

Trading after hours. Future Rule 39, Sec. 2; Rule of Order 

7 110-206 

Trading in Puts and Calls, Future Rule 39, Sec. 4 110 

Transferable notice, failure to forward within time, Future 

Rule 22 96 

Transferable notice, failure to have demand stamped. 

Future Rules 22-24 96-100 



INDEX. XXV 

Perished Staple: 

Future Kule 17 '-■ ^^ 

Petitions: ^^ -.r^c 

By-Laws, Article II; General Rule 8 20-195 

Posting of 

Amendments to Constitution or By-Laws, Article X Id 

Amendments to Eules, By-Laws, Article IV 22 

Apiilications for membership, By-Laws, Article XIII 26 

Bids (10:30 A. M. and 12:30 P. M.), Future Eule 50 (2) 126 
Damaged by fire, smoke or water, cotton, Future Eule 27 102-103 

Death of a member, Future Eule 64 135 

Deliveries on contracts, Future Eule 24 100 

Election of members, General Eule 19 201 

Expulsions, Constitution, Article 8 L5 

Failed members, Future Eules 55-56 130-131 

Margin calls, when office closed, Future Eule 50 126 

Nominations for Officers and Directors; By-Laws, Arti- 
cle 1 1» 

Notice, transferable, when office is closed. Future Eule 22 96 
Partnership, dissolution of or changes in, General Eule 4, 

Sec. 2 194 

Power of Attorney, revocation of, Future Eule 54 129-130 

Eesignations, Constitution, Article 8; General Eules 5 15-194 

Sales for future delivery. Future Eule 41 Ill 

Spot Quotations, Article YIL By-Laws: General Eule 16 23-200 

Suspensions, Constitution, Article 8; General Eules 5.... 15-194 
Transferable notice, price at which shall be issued. Future 

Eule 22 (8) ' 99 

Powers of Attorneys: 

By-Laws, Article XVI; Future Eule 54; General 

Eule 6 28-29-129-130-194 

President: 

Absence of, temporary, By-Laws, Article 2 20 

Annual election, duties in case Directors not elected. Char- 
ter, Article VI; By-Laws, Article 1 4-5-19 

Appoint Supervisors and Assistant Levee Inspectors, 

may — Press Supervision 2; Levee Inspection 2 211-219 

Call, selectihsr, to conduct in absence of Superintendent, 

Future Eule 46 114 

Citations shall be served on, Charter, Article II 3 

Countersign checks, By-Laws, Articles XII 25 

Documents, petitions, etc., must have permission of to ex- 
pose or introduce, General Eule 8 195 

Inspectors of Election, shall fill vacancies. Charter, Article 

VI; By-Laws, Article I 4-19 

Licenses, shall sign. Future Eule 4 (2) 76 

Meetings, By-Laws, Article II 20 

Member of Committee on Supervision and Deliveries, 

Future Eule 6 76 

Officers and Directors, failure to elect, duties of. Charter, 

Article VI; By-Laws, Article 1 4-5-19 

Posting on bulletin, under exclusive control of, Eules of 

Order 4 205 

Pro Tempore, By-Laws, Articles II-III 20-21 

Quorum;s, may make appointments to create. General Eule 

14 199 

Shares of stock, shall sign, Charter, Article III 4 



xxvi INDEX. 

Vacancies in committees, may fill, General Rule 14 199 

Visitor's cards, may issue, General Rule 11 196 

Visitor's cards, shall revoke. General Rule 10 195-196 

Presses (See Warehouses). 

Pressmen (See Warehousemen). 

Principals, Rights of: 

Future Rule 42 : 112 

Puts and Calls: 

Penalty for trading in. Future Rule 39, Sec. 4 110 

Quarter Grades (See Intermediary Grades). 

Quorum: 

Board of Classers, Future Rule 8 72 

Committees lacking, General Rule 14 199 

Exchange meetings, By-Laws, Article 2 20 

Floor Committee, Rule of Order 5 205 

Spot Quotation Committee, By-Laws, Article VII 23 

Quotations: 

Continuous, General Rule 20 202 

Spot, By-Laws, Article VII; Future Rule 15 23-88 

Rates of Brokerage: 

Ex- Warehouse Rule 20; Future Rule 47 45-114-115-116 

Re-Admission: 

Exrelled members. Constitution, Article 9 16 

Rebaled Cotton: 

Future Rule 17 91 

Record of Demands Stamped: 

Future Rule 21, Sec. 5 95 

Record of Failures: 

Future Rules 56-57-58 131-132 

Record of Transactions: 

Time and price must be reported. Future Rule 41 Ill 

Transactions reported must be made by open outcry. 

Future Rule 41 , Ill 

Registration of, or Changes in, or Dissolution of; Co-PartnersMps: 

General Rule 4, Sec. 2 194 

Re-Instatement of Failed or Suspended Member: 

Disqualified for, Future Rule 61 134 

How obtained, Future Rule 62 134 

Rejections: 

Appeal from decision Board of Classers, Future Rule 8, 

Sec. a 79 

Assistant Inspector and Sampler, Future Rule 12 83 

Charge for. Future Rule 28 103 

Compensation for, where cotton is sold on samples at 

average price, Ex- Warehouse Rule 5 39 

Improper, Future Rule 12, Sec. 2 83 

Moisture, in the event of. Future Rule 16, Sec. 4 90 

On To Arrive cotton. To Arrive Rules 17-18-20 : 58-59 

Sampler and Inspector, by, Future Rule 12 83 

Samplers of, may be sent to Board Cotton Examiners, 

Future Rule 12 83 

Release of Margins: 

Future Rule 51 127 

Repacked Cotton: 

Future Rule 17 91 

Reporting Sales of Futures: 

Future Rule 43 Ill 



INDEX. xxvii 

Representatives of Members: 

Bv-Laws, Article XYI; General Eule 6 28-29-194 

Resignations and Suspensions: 

Posting of, Constitution, Article 8; General Eule 5 15-194 

Resolutions Offered at Exchange Meetings: 

Must be in writing, By-Laws, Article XYII- 30 

Rings: 

Future Eule 48 124-125 

Rules: 

Order subject to, Future Eule 2 74 

Sales of Futures: 

Eeporting, Future Eule 41 Ill 

Sales of Spots: 

Eeports of confidential, General Eule 16 200 

Samplers: 

Licensed, must be, Future Eule 4 75 

Manner of Sampling, Future Eule 12 83 

Xot to pass on questions of grade. Future Eule 12 83 

Shall examine each bale, Future Eule 12 83 

Samples : 

Cutting bands for samples. Supervision Eule 8 213 

Disposition of, Future Eule 16, 89-90-91 

Drawn bv licensed sam.pler onlv. Future Eule 12 83 

Drawn at E. E. Depot,^Future 'Eule 13, Sec. 9 85 

Examination of, may be made on holidays. Future Eule 10 81 

Failure to deliver, Future Eule 18 91 

Failure to remove. Future Eule 16, Sec. 5 91 

Guarantee of correctness of. Ex-warehouse Eule 3, Sec. 2 37 
How drawn, Ex-warehouse Eule 3; Future Eule 12; Press 

Supervision Eule 9 37-83-195 

Loose cotton, disposition of, Press Supervision Eule 10... . 214 

Loose, made from, Press Supervision Eule 11 214 

Loose, baling of, Press Supervision Eule 12 214 

Lost or destroyed. Future Eule 36 108 

Not retained by Board of Examiners, Future Eule 18 91 

Of rejections mav be sent to Board of Classers^ Future 

Eule 12 "; 83 

Ownership of, Future Eule 18 91 

Eeserve samples, examination of etc.^ Ex-warehouse Eule 3 37 

Eeserve samples, disposition of. Ex-warehouse Eule 3 37 

Eesronsibilitv for. Future Eule 18 91 

Sealing of. To Arrive Eule 16 58 

Weight of, Ex-warehouse Eule 3;Press Supervision Eule 7 37-213 

When may be demanded. To Arrive Eule 8 51 

Sand, Dirt, Etc.: 

Future Eule 17 91 

Scales: 

Testing of, Ex- warehouse Eule 14 44 



Corporate, Charter, Article IX; General Eule 1 6-193 

Secretary of Agriculture: 

Certificate of grade of, Future Eule 20 92 

Eulings of 141 to 166 

Secretary of tlie Exchange: 

By-Laws, Article XI 25 

Must countersign licenses, Future Eule 4 (2) 76 



.\xviii INDEX. 

Seed, Excess of: 

Future Rule 17 91 

Settlement of Contracts: 

Average price, compeiisatioii for grades at. Ex- warehouse 

Rule 5 : 39 

Claims, settlement of, in case of failure, Future Rule 55 130 

Compensation for grades on average price, Ex-warehouse 

Rule 5 39 

Contract of earliest date first settled. Future Rule 

48, Sec. 2 124 

Death, in case of a, Future Rule 64 135 

Deficiency from weights specified, To Arrive Rules 10, 

37; Future Rule 25 52-07-100 

Difference in grade. Ex-warehouse Rule 5, To Arrive Rule 

7 39-51 

Failure, in case of. Future Rule 55 130* 

Failure of margin depositories, Future Rule 51, Sec. 3—. 128 

Failure to make delivery, etc.. Future Rules 21-25.-93-94-100-101 

Final, Future Rule 21, Sec. 2 94 

Grades considered in, Future Rule 15, Sec. 2 88 

Mutual consent, by, Future Rule 25 100- 

Offset and substitution, Future Rules 25-48, Sec. 2... 100-125 

Rejections on to arrive sales, To Arrive Rules 17-18- 

20-21 58-59-6a 

Rings, Future Rule 48 ■.... 124-125: 

Tender by deliverer on own notice of grade. Future Rules 

3-21, Sec. 2 74-75-94 

Transferable notices, Future Rules 22-23 96-97-98-99 

Slips: 

Contract, Future Rule 45 112' 

Meri..,bers must have permanent offices registered. Future 

Rule 43 : 112- 

Powers of Attorney for signing, Future Rule 45 112 

Smoke-Damaged Cotton, Future Rule 27 102; 

Smoking: 

Rule of Order 8 206 

Spot Cotton (See Ex-warehouse) : 
Spot Quotations, Committee on: 

By-Laws, Article VII; General Rule 16 23-200- 

Spot Quotations: 

By-Laws, Article VII; Future Rule 15; General Rule 16-23-88-200 
Stained Cotton: 

General Rule 16 200 

Standard of Classification: 

By-Laws, Article VII; Future Rules 8-10-15-37 23-79-82-88-10^ 

Standard of Compressing: 

Bands on bales, Rule 1 225 

Bales must be completely covered. Rule 7 226" 

Basis of freight engagement. Rule 7 226 

Bagging, insufficient. Rule 7 226 

Certificates to be under oath, Rule 5 225- 

Condemnation certificate, when shipper must accept. Rule 5 225 

Certificates to show shipping marks, etc.. Rule 7 226 

Cotton remarked in New Orleans, Rule 6 226 

Clauses descriptive of bales. Rule 7 226 

Durably marked, bales must be, Rule 7 226 



INDEX. xxix 

Freight engagement, basis of, Eule 7 226 

Hand-tied bales, Eule 4 225 

Inspectors to be sworn, Eule 5 225 

Measurem.ent of bales, Eule 2 225 

Pickery bales, or bales with less than six bands, Rule 3.— 225 

Eights of shippers where cotton is condemned, Eule 5—..... 225 
Shipper, when must accept certificate of condemnation, 

Eule 5 225 

Standard size gin boxes, Eule 7 226-227 

Standard of compressing, Eule 7 226-227 

Staple: 

Appeal on valuation. Future Eule 14 86-87 

Maximum value allowed on future contracts. Future 

Eule 14 86 

Minimum length deliverable. Future Eule 14 86 

Perished or immature, Future Eule 17 91 

Samples of, when drawn from both sides. Ex-warehouse 

Eule 3 36-37 

Storage of Certificated Cotton: 

Future Eules 4-29 75-105 

Substitution of Names: 

Future Eule 25, Sec. 2; 48 101-124 

Supervision in Presses: 

Annual election of Supervisors, Eule 1 211 

Assistant Supervisors, assignments and monthly reports, 

Eule 4 212 

Assistant Chief Supervisor, Eule 4 212 

Assistant Supervisors, duties of, Eule 4 212 

Brokers' samples, Eule 8 213-214 

Buyers' Inspectors, duties of, Eule 10 214 

Baling of loose, Eule 12 214 

Benefit of Supervision Eules allowed to non-members, con- 
ditions of, Eule 17 216 

Chief Supervisor, duties of, Eule 4 212 

Committee on Supervision and Deliveries, duties of, Rule 

3 211 

Cutting bands for sam,pling, Eule 8 213 

Deliveries on Sunday, extra cost thereof, Eule 15 216 

Duty of press owners, Eule 19 216 

Election and term of office of Supervisors, Eule 1 211 

Factors' samples, Eule 7 „ 213 

Fees on cotton received and stored in presses, Eule 14.... 215 
Fees ou shipmarked and small numbers sampled for re- 
sale, Eule 14 215 

Fees on cotton delivered from presses by planters' marks, 

Eule 14 ! 215 

Fees on cotton sampled at depots, etc., Eule 14 215 

Junk shops, duties of Supervisors thereto, Eule 11 214 

Loose made from inspecting, how disposed of, Eule 10.... 214 

Loose m.ade from sampling, how disposed of, Eule 11 214 

Loose cotton for types, Eule 13 '. 215 

Owners' right relating to loose, Eule 12 215 

President of Exchange, duties and powers of, Eule 2 211 

Pavment of Inspection Fees and charges through brokers, 

Eule 12 214 

Samples, brokers', Eule 8 213 

Samples, how drawn, Eule 9 214 

Samples, factors', Eule 7 213 



XXX INDEX. 

Superintendent of Exchange^ duties relative to bills, 

Rule 14 215 

Storage room for loose, Rule 18 216 

Salaries of Chief and Assistants, Rule 6 213 

Transactions between members and non-members, Rule 16 216 
Supervision and Deliveries, Committee on: 

Complaints, written, of misconduct, shall investigate, 

Future Rule 4 ! 75 

Composition and functions of, Future Rule 6 76-77-78 

Cotton not ready for inspection, Future Rule 16 (3) 89 

Levee Inspection, duties of, in relation. Levee Inspection 

' Rule 10 221 

Licences, Future Rules 4-6 75-76 

Licenses, suspension of, Future Rule 6 (4) 77 

Oath, shall administer, Future Rule 6 (5).... 77 

Supervision, duties of, in relation to, Supervision Rules 

3-4-14 , 211-212-215 

Storage places, must be recommended hj, Future Rule 4 75-76 

Supervisory Committee, General Rule 13 196 

Default on contracts, intentional. Future Rule 55... 130 

Failed member, Future Rule 55 130 

Failed member, re-instatement of, Future Rule 62 134 

Forced notices of failure. Future Rule 56 131 

Investigation of affairs of failed members, Future Rule 

55 130 

Report to Board of Directors, Future Rule 55 130 

Schedule of failed members. Future Rule 61 134 

Suspension: 

Annual dues and assessm.ents, failure to pay, Constitution, 

Article VI; General Rule 12 13-196 

Board of Directors, action by. Constitution, Article VIII 15 

Bucket Shops, for connection with, General Rule 18 201 

Claim,, member failing to file. Future Rule 57 132 

Commission law, violation of. Future Rule 47, Sec. 6 116 

Failed member, re-instatement of. Future Rule 62 134 

Misconduct, Constitution, Article VIII 15 

Omission to file claim, when failure not posted. Future 

Rules 56-57 131-132 

Posting, Constitution, Article 8; General Rule 5 15-194 

Publishing misstatements, etc., General Rule 18, Sec. 2.... 201 

Trading after hours. Future Rule 39 109—110 

Trading in Puts and Calls, Future Rule 41, Sec. 4 110 

Transferable notice, use of fictitious names. Future Rule 

23 (6) 99 

Violations of Constitution, By-Laws, or Rules, Constitu- 
tion, Article VIII , 15 

Vote at annual election, suspended mem^ber cannot, Gen- 
eral Rules 2-3 193 

Tags, Future Rules 11-12 82-83 

Tare, Ex-warehouse Rule 8; To Arrive Rule 25 40-62 

Ties, (See Bands and Standard of Compressing) : 

Allowance for extra. Ex-warehouse Rule 7 39 

Cutting for sampling. Supervision Rule 8 213 

Excess of. To Arrive Rule 26 65 

Missing, To Arrive Rule 26 65 

Number and weight of. Ex-warehouse Rule 7; To Arrive 



INDEX. XXXI 

Eule 22 39-61 

Eemoved for inspection, Future Kule 13, Sec. 4 84 

Tinged Cotton: 

Future Eule 17; General Eule 16 91-200 

To Arrive Cotton: 

Allowances awarded in New Orleans and other undisputed 

claims, when paid, Eule 9 - 52 

Allowances on samples drawn from compressed bales, 

Eule 28 66 

Arbitrators, how appointed, Eule 21 59-60 

Arbitrations on guaranteed through where fees shall be 

paid, Eule 36 67 

Buyer may receive through Cotton Exchange cotton sold 

examination New Orleans, Eule 19 59 

Buyer 's risk, when at, Eule 3 4& 

Claim.s on cotton weighed, sampled and inspected in New 

Orleans, limit of time for presenting, Eule 9 52 

Claims for fraudulently packed cotton, Eule 11 52-53 

Cotton to be w^eighed in New Orleans, time limit therefor, 

Eule 12 53 

Cotton sold landed mill points in the United States, Eule 

30 66 

Claims for deficiency in compressing, when presented, 

Eule 14 54 

Compressed cotton re-weighed in New Orleans, settle- 
ments, Eule 22 : 61 

Cotton re-weighed and re-sani.iiled in New Orleans must 

be with the knowledge of seller, Eule 24 62 

Cotton sold to arrive, examination in New Orleans — how 

weighed; Eule 25 62 

Claim.s for loss in weight from foreign points, Eule 32.... 66 

Claims for loss in weight and deficiency in grade — limit 

of time for forwarding and presentation, Eule 33.— 67 

Claims on to arrive cotton guaranteed through for grade 
■ — when six per cent may be deducted from gross in- 
voice weight, Eule 34 67 

Controllers at port of discharge must establish claim.s re- 
lating to weight, tare or dampness on guaranteed 
through cotton, not covered by these rules, Eule 37 67 

Cotton sold on guaranteed through terms, shipside New 

Orleans, when shall be shipped, Eule 12 53 

Contract for to arrive cotton, on description, Eule 15.... 57 

Drafts and bills of lading, Eule 7 51 

Drafts on to arrive cotton or cotton sold to reach New 

Orleans within specified time, Eule 13 53-54 

Disputes as to grade or staple, how settled, Eule 21 59-60 

To arrive cotton sold on samples or tvpes, buyer may re- 
ject or accept with an allowance if not represented in 
original samples or types, Eule 17 58 

Fees, by whom paid, Eule 21 59-60 

Fraudulently shipped cotton, how settled, Eule 28 66 

Gross landing weight, excess of bands, missing bands, 

Eule 26 65 

Guaranteed through on samples must turn out equal to 

samples, Eule 29 66 

Insurance and Cotton Exchange Supervision and Levee 



xxxii INDEX. 

Inspection, Rule 1 49 

Loss in weight in ease of arbitration allowance must be 

deducted from invoice weight, Rule 35 67 

Maximum and minimum weights on guaranteed through 

shipments, Rule 10 52 

Ocean freight and insurance on loss in weight, when re- 
funded, Rule 27 65 

Price shall include freight to New Orleans and ranging 

Rule 1 49 

Payment, when shall be demanded, Rule 3 49 

Payment, when shall be m.ade. Rules 5-7 50-51 

Responsibility of sellers, Rule 6 51 

Rejections under Rule 17, how settled. Rule 18 59 

Rejections to be invoiced back to local seler, duty of local 

seller, Rule 20 59 

Sales on actual samples when cotton at buyer's risk, Rule 

2 49 

Sales on description when cotton at buyer's risk. Rule 2 49 

Sales New Orleans delivery ''barring fire," Rule 3 49-50 

Sales New Orleans delivery without condition ''barring 

fire," Rule 4 50 

Shipments from interior, limit of time. Rule 5 50 

Samples on sales for examination in New Orleans, when 

may be demanded, Rule 8 51 

Samples on sales guaranteed through termsj when and how 

may be forwarded, Rule 8 51 

Seller's risk, when at. Rule 4 -50 

Seller's responsibility for weight, when ceases, Rule 12 53 

Sealing of types. Rule 16 58 

Seller 's responsibility ceases when cotton reweighed and 
resampled in New Orleans, except in cases of fraudu- 
lently packed, Rule 23 61 

Suspicion of serious irregularities, how met. Rule 28 65 

Tare allowance cotton sold in New Orleans, Rule 25 62 

Unmerchantable bales. Rule 10 52 

Uncompressed bales, settled for at actual weights, Rule 22 61 

When seller replaces with spot, Rules 3-5 49-50 

Weights of to arrive cotton sold examination in New Or- 
leans and for forward shipment or delivery. Rule 10.— 52 

Weight settlements. Rules 10-31 52-66 

Trading, (See Offers to Buy and Sell): 
Trading in Current Month: 

When shall cease. Future Rule 23 99 

Trading, Limit of fluctuations. Future Rule 1-A 73 

Trading After Hours, Future Rule 39 109 

Trading in Puts and Calls: 

Future Rule 39 109 

Trading by Representatives of Members: 

Article XVI, By-Laws 28-29 

Transactions, Record of: 

Future Rule 41 Ill 

Transfer of Certificated Cotton: 

Future Rule 29 105 

Transferable Notices: 

Accepted on any contract for Future delivery, Future 

Rule 22 '. 96 



INDEX. xxxiii 

Fictitious or frauflulent use of names, Future Kule 22.... 96 

Form of notice, Future Eule 22 96 

Holidays, procedure in regard to, By-Laws, Article 

XVIII; Future Rule 38 30-109 

Issuance of, not permissable on holidays, Future Rule 38 109 
Last day of month upon which notices m.ay issue, Future 

Rule 23 99 

Office closed, delivery, how made. Future Rules 22-43 96-112 

Passing of shall not prevent calling margins before day 

of delivery. Future Rule 50, Sec. 2 127 

Penalty for failure to have demand stamped, Future 

Rule 24 100 

Penalty for failure of holder to notify drawer, Future 

Rule 22 (7) 98 

Prices at which shall be issued. Future Rule 22 (8) 99 

Return of, on delivery of cotton. Future Rule 21, Sec. 1 94 
Settlement of, where warehouse or press receipts and cer- 
tificates not delivered to receiver. Future Rule 25.... 100-101 
Shall be considered 100 bales (50,000 pounds), Future 

Rule 24 100 

Time of receipt must be indorsed on, Future Rule 22 96 

Time within which transfer must be made, Future Rule 22 97 

Written notification of holding of, Future Rule 22 97 

Treasurer of the Exchange: 

Claim,s on Inspection Fund, Future Rule 32 1Q6 

Duties of, By-Laws, Article XII; General Rule 15 25-199 

Inspection and classing charges. Future Rule 28 103 

Levee Inspection fees, Levee Inspection Rule 12 222 

Pro tempore, By-Laws, Article III; General Rule 15 21-199 

Supervision fees, Supervision Rule 14 215 

Types (See Standards of Classification): 

Uncompressed Cotton, Ex-warehouse Rule 7; Future Rule 20.... 39-92 

Patches on, Ex-warehouse Rule 7 39 

United States Cotton Futures Act 141-177 

Unmerchantable Cotton, Ex-warehouse Rule 10; Future Rules 

17-28 42-91-103 

Vacancies: 

Board of Directors, Charter, Article VI; Bv-Laws, 

Article XIX '. 5-30 

Board of Classers, Future Rule 8 79 

Committees, General Rule 14 199 

Inspectors of Election, Charter, Article VI; By-Laws, 

Article I 4-19 

Spot Quotation Com.mittee, By-Laws, Article VII 23 

Verbal Contracts, Future Rule 1, Sec. 3 73 

Margins may be called, Future Rule 49 126 

Vice President, Charter, Article VI; Constitution, Article III; 

By-Laws, Articles I-II-III 4-12-10-20-21 

Violations of By-Laws or Rules, Constitution, Article VIII 15 

Violations of Commission Law, Future Rule 47, Sec. 6 115 

Visiting Members, Constitution, Article 4; General Rule 2 112-193 

Visitors, General Rules 10-11 195-196 

Voting: 

Annual election. Charter, Article VI; By-Laws, Article I 4-5 
Annual election, suspended member cannot vote. General 

Rules 2-3 193 



Xxxiv INDEX. 

Applications for membership, Constitutioiij Article V; By- 
Laws, Article XIII 12-26 

By-Laws, amendment of, Constitution, Article X 16 

Constitution, amendment of, Constitution, Article X 16 

Warehousemen: 

License, notice of intention to cancel, Future Rule 4 (4) 76 

Licensed, must be. Future Rule 4 75 

Rem,oval of cotton, shall notify Inspection Bureau of. 

Future Rule 29 '. 105 

Warehouse Receipts (See also Inspection and Classification): 

Delivery made on Saturday, Future Rules 22-23 96-99 

Delivery due on last day of month, Future Rule 23 99 

Failure to deliver. Future Rule 25 100-101 

Indorsed by party in whose favor drawn, Future Rule 21 93 

Issuance and limitations of, Future Rule 19 23 

Tenderable before 2 P. M., Future Rule 21, Sec. 5 95 

Transferable notices, Future Rule 22 96-97 

Weight notation of on, Future Rule 21, Sec. 4 95 

Warehouses: 

Certificated cotton shall be stored only. Future Rule 29.... 105 

Expense to date of delivery, future Rule 21, Sec .3 95 

Fire in. Future Rule 27 102 

Licensed, must be, Future Rules 4-6 75-76-77 

Port of New Orleans, must be within limits of, Future 

Rules 1-4 71-72-76 

Transfer of certificated cotton, Future Rule 29 105 

Warehouse, what constitutes one, Future Rule 34 107-108 

Withdrawing cotton from. Future Rules 29-31 105-106 

Water-Damaged Cotton^ Future Rule 27 102 

Water-Packed Cotton, Ex-warehouse Rule 15; To Arrive Rule 11, 

Future Rule 17 44-52-53 

Weighers: 

Cannot be in service of party interested in inspection. 

Future Rule 16, Sec. 3 90 

Must be licensed, Future Rules 4-6 75-76-77 

Weighing and Be- Weighing: 

Charge for. Future Rule 11 82 

General provisions, Ex-warehouse Rule 13; To Arrive Rule 

25; Future Rule 11 42-62-82 

Loose cotton, Future Rule 33; Supervision Rules 11-12-13 106 

Record of Weights, Future Rule 19 92 

Redrawn samples, Future Rule 36 108 

Smoke or water damage. Future Rule 27 102 

Weight: 

Allowance, Future Rule 21, Sec. 4 95 

Binding for, how long and subject to allowance, Future 

Rule 21, Sec. 4 95 

Deficiency in. Future Rule 25 100 

Maxim.um and minimum on Guaranteed Through cotton, 

To Arrive Rule 10 52 

Tare, Ex-warehouse Rule 9; To Arrive Rules 22-25....39-59-60-62 

Withdrawals from Membership, General Rule 5 194 



INDEX. 



XXXV 



PRESIDENTS AND VICE-PRESIDENTS OF THE NEW ORLEANS 
COTTON EXCHANGE SINCE ORGANIZATION. 



1871-72, 
1872-73. 
1873-74. 
1874-75. 
1875-76. 
1876-77. 
1877-78. 
1878-79. 
1879-80. 
1880-81. 
1881-82. 
1882-83. 
1883-84. 
1884-85. 
1885-86. 
1886-87. 
1887-88. 
1888-89 
1889-90. 
1890-91. 
1891-92 
1892-93 
1893-94 



E. H. SUMMERS President 

J. H. SCHROEDER Vice-President 

JOHN PHELPS President 

AD. FRERICHS Vice-President 

JOHN PHELPS President 

THOS. H. HUNT Vice-President 

JOHN PHELPS President 

J. B. LAFITTE Vice-President 

W, C. BLACK President 

T. L. AIREY Vice-President 

W. C. BLACK President 

E. L. JEANRENAUD Vice-President 

PERRY NUGENT President 

E. L. JEANRENAUD Vice-President 

PERRY NUGENT President 

WM. CUNNINGHAM Vice-President 

WM. CUNNINGHAM President 

VICTOR MEYER Vice-President 

T. L. AIREY President 

A. J. R. LANDAUER Vice-President 

T. L. AIREY President 

A. J. R. LANDAUER Vice-President 

JOHN PHELPS' President 

GILBERT H. GREEN Vice President 

CHAS. E. BLACK President 

E. ALLGEYER Vice-President 

CHAS. E. BLACK President 

P. POUTZ, SR Vice-President 

R. M. WALMSLEY President 

L. T. TURNER Vice-President 

R. M. WALMSLEY President 

L. T. TURNER Vice-President 

R. M. WALMSLEY President 

L. T. TURNER Vice-President 

S. O. THOMAS President 

CHAS. CHAFFE , Vice-President 

CHAS. CHAFFK President 

E. OVERBECK Vice-President 

CHAS. CHAFFE President 

E. OVERBECK Vice-President 

WALTER C. FLOWER President 

E. OVERBECK Vice-President 

WALTER C. FLOWER President 

E'. OVERBECK , Vice-President 

JOHN W. LABOUISSE President 

ANDREW STEWART Vice-President 



XXXVl 



INDEX. 



1894-95 

1895-96 

1896-97 

1897-98.. . 

1898-99 

1899-1900. 

1900-01 

1901-02 

1902-03 

1903-04 

1904-05 

1905-06 

1906-07 

1907-08 

1908-09 

1909-10 

1910-11 

1911-12 

1912-13 

1913-14 

1914-15 

1915-16 

1916-17 

1917-18 

1918-19 

1919-20 



ANDEEW STEWART President 

FELIX COUTURIE Vice-President 

ANDREW STEWART President 

FELIX COUTURIE.. Vice-Presiuent 

FELIX COUTURIE : President 

JNO. M. PARKER Vice-President 

FELIX COUTURIE President 

JNO. M. PARKER Vice-President 

JNO. M. PARKER President 

C. H. MINGE \ace-President 

JNO. M. PARKER President 

C. H. MINGE Vice-President 

S. P, WALMSLEY President 

£. BORNEMANN ice-President 

S. P. WALMSLEY President 

S. WEIS Vice-President 

A, BRITTIN President 

M. E. DuQUESNAY Vice-President 

A. BRITTIN President 

M. E. DuQUESNAY .Vice-President 

A. BRITTIN President 

M. E. DuQUESNAY Vice-President 

WM. MASON SMITH President 

WM. T. HARDIE Vice-President 

WM. MASON SMITH President 

WM. T. HARDIE .Vice-President 

W. B. THOMPSON President 

JOHN F. CLARK .Vice-President 

W. B. THOMPSON President 

JOHN F. CLARK Vice-President 

W. B. THOMPSON President 

E. J. GLENNY Vice-President 

W. B. THOMPSON President 

E. J. GLENNY Vice-President 

E. J. GLENNY ^ President 

W. P. STEWART .A^ice-President 

E. J. GLENNY President 

W. P. STEWART Vice-President 

E. J. GLENNY President 

W. P. STEWAET Vice-President 

E. J, GLENNY ! President 

W. P. STEWART Vice-President 

W. P. STEWART President 

C. B. THORN : Vice-President 

JNO. F. CLARK President 

C. B, THORN Vice-President 

JNO. F. CLARK President 

C. B. THORN Vice-President 

JNO. F. CLARK , President 

EDW. S. BUTLER Vice-President 

EDW. S. BUTLER President 

S. J. WHITE Vice-President 



CHARTER 



United States of America^ 
State of Louisiais'a^ 
City of Xew Orleans. 

Be it Known, That on this fifth (5th) day of the month of 
May, of the year of our Lord one thousand eight hundred and 
ninety-eight (1898) and of the Independence of the United States 
of America, the one hundred and twenty-second: 

Before me, JOHX G. EUSTIS, a Xotary Public, duly com- 
missioned and qualified in and for the Parish of Orleans, State of 
Louisiana, and in the presence of the witnesses hereinafter named 
and undersigned: 

Personally came and appeared, Felix Couturie, President, 
and Henry G. Hester, Secretary, of the Xew Orleans Cotton 
Exchange, a corporation domiciled in the City of Xew Orleans, 
created under the laws of the State of Louisiana, by Act passed 
before me, JOH]^ G. EUSTIS, a ISTotary Public, in this city, 
on the 6th day of May, 1873, recorded in the Mortgage Office 
of this Parish in Book 89, Folios 135, 136, 137 and 138, on the 
7th day of May, 1873, which was amended by three Acts passed 
before the undersigned Notary in this city on the 21st day of 
January, 1880, recorded in the Mortgage Office of this Parish 
in Book 152, Folio 367, on the 21st day of January, 1880, one 
on January 18th, 1889, recorded. Book 353, Folio 693, and the 
other before the undersigned Xotary Public in this city on the 
27th of April, 1897, recorded in the Mortgage Office of this Parish 
in Book 565, Folio 782, on the 27th day of April, 1897, herein 



2 

acting under and by virtue of resolutions adopted at a general 
meeting of the stockholders of said New Orleans Cotton Exchange 
held on the 5th day of May, 1898, a certified copy of which 
resolutions is annexed in the margin of this Act for reference. 

Who declared. That in accordance with a notice issued by 
the President of the New Orleans Cotton Exchange, dated at New 
Orleans, La., on the 4th day of April, 1898, ordering a meeting 
of the stockholders of said corporation to be held on the 5th day 
of the month of May, 1898, for the purpose of passing upon an 
amendment to Article One of the Charter of said corporation, and 
also upon such other matters as might be laid before it, or brought 
up at said meeting; that in compliance with the provisions con- 
tained in said Charter, after thirty days' notice in two of the news- 
papers published in the City of New Orleans, to-wit : The Times- 
Democrat and the Daily Picayune, a meeting of the stockholders, 
of said corporation was held on the 5th day of the month of May, 
1898, and after all the formalities of the laws of this State and 
the Charter of this corporation had been" complied with, all of the 
stockholders of said New Orleans Cotton Exchange, present and 
represented at said meeting, unanimously voted to revise and amend 
the original Charter of said corporation and Acts amending same, 
as hereinafter expressed. 

Now, therefore, in order to carry out the objects and purposes 
of said stockholders' meeting, evidenced by said certified copy of 
said resolutions adopted at said meeting, which are hereunto an- 
nexed for reference, and, in order to clothe the same in proper form 
and give it legal force and effect, the above named appearers do 
hereby formally declare, publish and make known, that the original 
Charter, executed before the undersigned Notary, on May 6th, 
1873, and amended by three Acts passed, one before the under- 
signed Notary on January 21st, 1880 and January 18th, 1889, and 
the other on April 27th, 1897, have been modified, revised, changed, 
amended, ratified and readopted so as to read as follows : 



ARTICLE I. 

The corporate name and title of this Association shall be The 
New Orleans Cotton Exchange, by which it shall be known, as 
well as sue and be sued; its term of existence is hereby extended 
for fifty years from this date unless sooner dissolved, as hereinafter 
provided for, and its doi^iicile shall be and is hereby fixed in the 
City of New Orleans. 

ARTICLE II. 

The purposes of this Association shall be to provide and main- 
tain suitable rooms for a Cotton and Commercial Exchange in the 
City of New Orleans, to adjust controversies between its members, 
to establish just and equitable principles, uniform usages, rules and 
regulations, and standards for classifications which shall govern all 
transactions connected with the cotton trade or any other articles 
•of trade between its members ; to acquire, preserve and disseminate 
information connected therewith; to decrease the risk incident 
thereto, and to generally promote the interests of the trade, and 
increase the facilities and the amount of the cotton and other busi- 
ness in the City of New Orleans. The President of the Association 
shall be the proper person on whom to serve all citations or all other 
legal documents or writs in all suits against the Association. 



ARTICLE III. 

The capital stock of said Association shall be One Hundred 
Thousand Dollars ($100,000) divided into Five Hundred (500) 
shares of Two Hundred Dollars ($200) each, which shares shall 
be paid in cash or in installments, as required by the Board of 
Directors, who may, from time to time, fix the price at which 
shares of stock belonging to this Association shall be sold, which 



price shall in no case be less than Two Hundred Dollars ($200) 
per share ; all certificates of stock shall be for Two Hundred Dollars 
($200) each, and shall be signed by the President and counter- 
signed by the Treasurer. 

AETICLE IV. 

Every member of this Association shall be required to be the 
holder of at least one share of the capital stock of this Association, 
and membership of this Association once acquired can only be 
terminated by means of resignation, duly accepted by the Board of 
Directors, by being dropped from the rolls by the Board of Directors, 
by expulsion, or by death. 

AETICLE V. 

The ownership of one or more shares of the capital stock of 
this Association shall not confer upon the holder thereof any of the 
rights or privileges of membership. 

AETICLE VL 

All the powers of the Association are vested in and shall be 
exercised by a President, Vice-President, Treasurer and Twelve 
(12) members, who, together, shall constitute a Board of Directors 
to be elected annually, on the first Monday of December in each 
year, at the office of said Association, between the hours of ten 
(10) o'clock A. M.^ and two (2) o'clock p. m.; and the present 
Officers and Directors of said Association as now constituted, shall 
be the Officers and Directors of said Corporation until the first 
Monday in December nexf^ and until others, under the provisions 
of this Act, shall be elected in their place; the Board of Directors 
shall appoint three (3) members to preside as Inspectors of Elec- 
tion, and should any of the Inspectors decline or fail to attend, the 



President shall appoint other persons to fill the vacancies, and any 
failure from any cause whatever to elect Directors on the day 
named for that purpose, shall not dissolve this Corporation, but 
the Officers and Directors then in office shall hold over until their 
successors are elected; in the event of no election taking place on 
the date aforesaid, the President shall cause another election to be 
held within thirty (30) days thereafter, and ten days' notice of the 
same shall be posted in the Exchange rooms. 

Each member shall be entitled to one vote in person (or by 
special power of attorney given to some member of the Exchange) 
by ballot, and a majority of votes cast at such election shall elect 
the person for whom they shall have been given. The Board of 
Directors thus elected shall enter upon the duties of their office on 
the first Wednesday succeeding their election, and shall continue 
in office until their successors are elected and qualified. The Board 
of Directors shall have the entire control and management of the 
Association, with power to hire or lease, and fit up such rooms 
as may be required for the purposes of the Exchange, and to ap- 
point a Secretary and such subordinate officers and employees, with 
such salaries as they may deem necessary. 

The said Board shall have full authority to fill all vacancies 
in their number from among the members of the Association, and 
is hereby invested with full power to frame and adopt such rules 
and regulations as they may deem requisite and necessary for the 
Association and the transaction of its business; provided, the same 
do not conflict wdth this Act of Incorporation, the laws of this 
State, or with the Constitution or By-Laws of said Association; 
they shall also have power and are hereby authorized to buy real 
estate and erect buildings for the use and purposes of the Associa- 
tion, to sell the same; to make contracts, leases, mortgages and 
compromises, to borrow money and issue bonds, and to do all and 
singular, such acts as may be necessary to carry on the business and 
further the objects of said Association. 



ARTICLE VII. 

The liquidation of the affairs of the said corporation shall be 
made by three (3) commissioners, elected by the stockholders, at 
a meeting convened for thaf purpose, after thirty days' previous 
notice in two newspapers published in the City of New Orleans. 
Each of said commissioners shall be a citizen of this State, and 
not indebted to the Association, and at such meeting, the stock- 
holders may cede to such Commissioners all powers necessary to 
the liquidation of the affairs of the Corporation, may fix their term 
of office, limit the period of liquidation, fix their compensation, 
define their duties and the manner in which they may be removed 
or their term of office renewed. 

ARTICLE VIII. 

It shall be lawful for the stockholders of said Association, at 
a general meeting convened for that purpose, after notice as re- 
quired by "Article Seventh," to make any modifications, additions 
or changes in the present Act of Incorporation, or to dissolve it 
with the assent of three-fourths of the stock represented at such 
meeting, and any such modification, addition, change or dissolution, 
shall be recorded as required by law. 

ARTICLE IX. 

The said Association shall have a Seal with such a device upon 
the same as the Board of Directors may adopt. 

ARTICLE X. 

No stockholder shall ever be held liable or responsible for the 
contracts or faults of the Association, beyond the amount of his 
stock therein. 



AETICLE XI. 

The following named stockholders shall constitute the Board 
of Directors and shall hold their seats until their successors shall 
have been elected and qualified, in accordance with Article Sixth: 

Felix Couturie^ President. 
John M. Paeker^ Vice-President 
J. G. DuxcAN, Treasurer. 
Jas. Lea McLeait, S. Hyman, Norman Eustis, 

C. L. DeFuentes^ Maurice Stern, H. E. Labouisse, 

C. H. MiNGE, S. Weis, H. Dessommes, 

E. Bornemann, W. F. Pinckard, A. C. Ziegler. 

Thus done and passed at my office, in the City of New Orleans, 
in the presence of Messrs. Louis Henry and Daniel S. Kelly, com- 
petent witnesses, residing in this city, who have signed the present 
Act, with the aforenamed appearers and me. Notary, on the day, 
month and year first above written, and after due reading. 
[Signed] Felix Couturie, President. 
Henry G. Hester, Secretary, 
Witnesses : 

Daniel S. Kelly, 
Louis Henry. 

J. G. EusTis, Notary Public, 

I, the undersigned, Eecorder of Mortgages in and for the 
Parish of Orelans, State of Louisiana, do hereby certify that the 
above and foregoing Act of Amendment to the Act of Incorporation 
of the New Orleans Cotton Exchange, of New Orleans, Lou- 
isiana, was this day duly recorded in my oSice, in Book 600, Foli© 
621. 

New Orleans, La., May Sixth, 1898. 

[Signed] George Guinault, D. K 
A true copy. 

[Signed] J. G. Eustis, Notary PuUice. 



CONSTITUTION 



11 



CONSTITUTION 

OF THE 

NEW ORLEANS COTTON EXCHANGE 

Adopted January 24, 1871, 

With All Kevisions Up to January 1st, 1920. 



AETICLE I. 

TITLE. 



The title of this Association shall be The New Orleans 
Cotton Exchange. 

AETICLE 11. 

PURPOSES. 

The purposes of this Association shall be to provide and main- 
tain suitable rooms for a cotton and Commercial Exchange, in the 
City of New Orleans; to adjust controversies between members; 
to establish just and equitable principles, uniform usages, rules and 
regulations, and standards for classifications, all of which shall be 
for the government of transactions in cotton or other articles or 
matters of trade between members; to acquire, preserve and dis- 
seminate information connected therewith; to decrease the risks 
incident thereto, and generally to promote the interests of the trade 
and the amount of the cotton and other business in the City of 
New Orleans. 



12 

ARTICLE III. 

OFFICERS. 

The Board of Directors of this Association shall consist of a 
President, Vice-President, Treasurer, and twelve Directors, all of 
whom shall be elected annually on the first Monday in December. 

AT^TICLE IV. 

QUALIFICATIONS FOR MEMBERSHIP. 

Section 1. All persons legally of age and of good character 
and commercial standing, whether resident or non-resident of New 
Orleans, may be elected members of this Association. 

QUALIFICATIONS FOR VISITING MEMBERSHIP. 

Sec. 2. A card of admission, as visiting member to the Ex- 
change rooms, may be issued to any person not engaged in the 
cotton trade, on the recommendation of the Committee on Member- 
ship and the approval of the Board of Directors, upon the payment 
by such person of the regular dues of the Exchange ; provided, that 
such person shall be subject to all the provisions of the Constitu- 
tion, By-Laws and rules which apply to members, and may be 
required to withdraw from the privileges of the Exchange, for 
cause, at the written request of five members; said request to be 
subject to the approval of the Board of Directors; and provided 
further, that such visiting members shall not be allowed to vote or 
attend executive sessions of the Exchange. 

ARTICLE V. 

ADMISSION OF MEMBERS. 

Applicants for membership shall be balloted for, after being 
recommended by the Committee on Membership and approved by 
the majority of the Board of Directors, under conditions prescribed 
by the By-Laws. 



No. 8. 

At a General Meeting of the Xew Orleans Cotton Exchange 
held August 24th, 1920, the following amendment to Article VI 
of the Constitution was adopted, viz : 

AMENDMENT TO CONSTITUTION 

ARTICLE VI 

Expunge the whole of Article VI as it now reads and substi- 
tute therefor the following as Article VI, viz: 

ARTICLE VI 

Initiation Fee, Annual Dues, etc. 

Sectiox 1. The initiation fee shall be five hundred (500) 
dollars and the Annual Dues two hundred (200) dollars, payable 
between the first and twenty-fifth days of November ; and no mem- 
ber whose dues are not paid by the latter date shall be entitled to 
any of the rights and privileges of membership of the Exchange 
until same shall have been paid in full; provided, that any member 
who shall have failed to pay his dues for the space of one year 

— —1" T^ian-Qin admission bv 






\^»^\A- 



No. 8. 

At a General Meeting of the New Orleans Cotton Exchange 
held August 24th, 1930, the following amendment to Article VI 
of the Constitution was adopted, viz: 

AMENDMENT TO CONSTITUTION 

ARTICLE VI 

Expunge the wliole of Article VI as it now reads and substi- 
tute therefor the following as Article VI, viz: 



Initiation Fee, Annual Dues, etc. 

Section 1. The initiation fee shall be five hundred (500) 
dollars and the Annual Dues two hundred (300) dollars, payable 
between the first and twenty-fifth days of November ; and no mem- 
ber whose dues are not paid by the latter date shall be entitled to 
any of the rights and privileges of membership of the Exchange 
until same shall have been paid in full; provided, that any member 
who shall have faUed to pay his dues for the space of one year 
shall forfeit his membership and can only regain admission by 
going through the same course and paying the same initiation 
fees and dues as are now or may hereafter be prescribed in the case 
of new members; provided further that any person elected a mem- 
ber of the Exchange after the first of March shall pay his dues at 
the rate of twenty dollars per month for the unexpired portion of 
the year. 

Sectiox 1-A. Payment of Annual Dues by a member while 

under suspension sliall not be construed as in any way affecting 

such suspension. 

Section 1-B. Tlie Board of Directors shall have authority 

le runiit the Annual Dues of any member while said member is in 

I III' service of the Array or Navy of the United States when the 

I'liited States is at war. 

.Sei'TIon 1-C. The Board of Directors shall collect on all 

transactions made on and after August 1st, 1919, as assessments 

towards the Building Fund of the Exchange : 

(a). On each and every contract of 100 bales sold by members 

of tlie New Orleans Cotton Exchange, for future delivery in New 

Orleans, six (6) cents. 

(b) On each and cveiy balr of fiithni houglil. and on each 
and every bale of cotton sold, the same as are now subject to the 
collection (if Supervision or Levee Inspection fees (being all cot- 

on — spot, E. (). li. sniiill nunibered, received, shipped or exported), 
•ree-foui'tbs (:!/!) ol' n ci iit per bale, such charge to be collected 

(c) The cliargcs above proviilod siiaii i.e coiiccied until Vr.; 
. building a ncH- Exrlinn-r Huildins ami furjiisbmg the 

'•-^'■l''i"iic '■ 11^ and oiriirs (iiirliMliii- intnvst on loans contracted 

lor siirli |iiir|i(iscM anil all olhri' iioirssarv rxiinises in connection 
Ibri'i'Hilb) shall lia\i' been I'lillv lii|inilalcil ; and no change in the 
h'nics of the Exchan,i;-u sball a licit the rollectiou of such charges 
until such liquidation sbal! liavr been completed. 

(d) All collections as above set forth shall be monthly, and 
sliall br krpt in separate funds to be desi«-nated as the "New Or- 
leans Coltoii I'lM-hanse Building Fund." 

All I'olleetions for the purposes above set forth shall cease as 
soon as the said costs of building and furuishiug, including in- 
terest thereon, shall have been liquidated. 

Section 2. Any member failing to pay any fines, dues or 
awards imposed or made by the Board of Directors, or any Com- 
mittee having the requisite authority, after being served with notice 
thereof, shall be suspended from all the rights and privileges of 
membership and excluded from the Exchange rooms until same 
shall have been paid in full, and the Board of Directors may, in 
their discretion, by resolution of a majority of the whole Board, 
declai-o his membership at an end and cause his name to he erased 
from the roll of membership. 




am mUU iJ^-l-Jo. 



No. 1. 

At a General Meeting of the New Orleans Cotton Exchange 
held May 28th, 1920, the following amendment to Article YI of 
the Constitution was adopted, viz. : 

AMENDMENT TO CONSTITUTION 
ARTICLE VI. 

Expunge Section 1 of Article YI of the Constitution as it now 
reads and substitute the following as Section 1, viz. : 

The initiation fee shall be five hundred (500) dollars; and the 
Annual dues two hundred (200) dollars, payable between the first 
and twenty-fifth days of Xovember; and no member whose dues 
are not paid by the latter date shall be entitled to any of the 
rights and privileges of membership of the Exchange until same 
shall have been paid in full; provided, that any member who shall 
have failed to pay dues for the space of one year shall forfeit 
his membership and can only regain admission by going through 
the same course and paying the same initiation fees and dues 
as are now or may hereafter be prescribed in the case of new mem- 
bers; provided further that any person elected a member of the 
Exchange after the first of March sliall pay his dues at the rate 
of twenty dollars per month for the unexpired portion of the year. 

The Article as amended shall read as follows : 

AETICLE YI. 



No. 1. 

At a General Meeting of the New Orleans Cotton Exchange 
held May 88th, 1920, the following amendment to Article VI of 
the Constitution was adopted, viz.: 

AMENDMENT TO CONSTITUTION 
ARTICLE VI. 

Expunge Section 1 of Article VI of the Constitution as it now 
reails and suhstitute the following as Section 1, viz.: 

The initiation fee shall be five hundred (500) dollars; and the 
Annual dues two hundred (200) dollars, payable between the first 
and twenty-fifth days of November; and no member whose dues 
:u-e not paid by the latter date shall be entitled to any of the 
lights and privileges of membership of the Exchange until same 
sliall have been paid in full; provided, that any member who shall 
liave failed to pay dues for the space of one year shall forfeit 
his membersliip and can only regain admission by going through 
tlie same course and paying the same initiation fees and dues 
as are now or may hereafter be prescribed in the case of new mem- 
bers ; provided further that any person elected a member of the 
Excliange after the first of March shall pay his dues at the rate 
oi twenty dollars per month for the unexpired portion of the year. 

The Article as amended shall read as follows : 

ARTICLE VI. 

Initiation Fee, Annual Dues, Etc. 

Section 1. The initiation fee shall be five hundred (500) 
dollars and the Annual Dues two hundred (200) dollars, payable 
between the first and twenty-fifth days of November ; and no mem- 
Ijer whose dues are not paid by the latter date shall be entitled to 
any of the rights and privileges of membership of the Exchange 
until same shall have been paid in full ; provided, that any member 
who shall have failed to pay his dues for the space of one year 
shall forfeit his membership and can only regain admission by 
going through the same course and paying the same initiation 
fees and dues as are now or may hereafter be prescribed in the 
case of new members; provided further that any person elected 
a member of the Exchange after the first of March shall pay his 
dues at the rate of twenty dollars per month for the unexpired 
portion of the year. 

Section 1-A. Payment of Annual Dues by a member while 
under suspension shall not be construed as in any way affecting 
such suspension. 

Section 1-B. Tlie Board of Directors shall have authority to 
remit the Annual Dues of any member while said member is in 
the service of the Army or Navy of the United States when the 
United States is at war. 

Section 2. Any member failing to pay any fines, dues or 
awards imposed or made by the Board of Directors, or any Com- 
mittee having the requisite authority, after being served with notice 
thereof, shall he suspended fi-oin all the rights and privileges of 
membersliip and exchnled I'luin llu^ lv\ change rooms until same 
sliall have lieeu paid in I'ull. ami tlic i'xiard of Directors may, in 
their discretidii, li\ iisdiiition liy a majority of the whole Board, 
declare liis m. imIm i^hip :it an end and cause his name to be erased 
from the roll uf intMuKrisliip. 



13 

AETICLE VI. 
Initiation Fee, Annual Dues^ Etc. 

Section 1. The initiation fee shall be five hundred (500) 
dollars; and the Annual Dues one hundred and fifty (150) dollars, 
payable between the first and twenty-fifth days of November; and 
no member whose dues are not paid by the latter date shall be en- 
titled to any of the rights and privileges of membership of the 
Exchange until same shall have been paid in full; provided, that 
any member who shall have failed to pay his dues for the space of 
one year shall forfeit his membership and can only regain admis- 
sion by going through the same course and paying the same initia- 
tion fees and dues as are now or may hereafter be prescribed in the 
case of new members; provided further, that any person elected a 
member of the Exchange after the first of March shall pay his dues 
at the rate of fifteen dollars per month for the unexpired portion 
of the year. 

Section 1-A. Payment of Annual Dues by a member while 
under suspension shall not be construed as in any way affecting such 
suspension. 

Section 1-B. The Board of Directors shall have authority to 
remit the Annual Dues of any member while said member is in the 
service of the Army or Navy of the United States when the United 
States is at war. 

Section 1-C. The Board of Directors shall collect on all 
transactions made on and after August 1st, 1919, as assessments 
towards the Building Fund of the Exchange : 

(a) On each and every contract of 100 bales sold by members 
of the New Orleans Cotton Exchange, for future delivery in New 
Orleans, six (6) cents. 

(b) On each and every bale of cotton bought, and on each 
and every bale of cotton sold, the same as are now subject to the 
collection of supervision or levee inspection fees (being all cotton — 



14 

spot, F. 0. B., small numbered, received, shipped or exported), 
three-fourths (%) of a cent per bale, such charge to be collected 
from both seller and buyer on each transaction. 

(c) The charges above provided shall be collected until the 
costs of building a new Exchange Building and furnishing the 
Exchange rooms and offices (including interest on loans contracted 
for such purposes and all other necessary expenses in connection 
therewith) shall have been fully liquidated; and no change in the 
Eules of the Exchange shall affect the collection of such charges 
until such liquidation shall have been completed. 

(d) All collections as above set forth shall be monthly, and 
shall be kept in separate funds to be designated as the "New Or- 
leans Cotton Exchange Building Fund." 

All collections for the purposes above set forth shall cease as 
soon as the said costs of building and furnishing, including interest 
thereon, shall have been liquidated. 

Section 2. Any member failing to pay any fines, dues or 
awards imposed or made by the Board of Directors, or any Com- 
mittee having the requisite authority, after being served with notice 
thereof, shall be suspended from all the rights and privileges of 
membership and excluded from the Exchange rooms until same shall 
have been paid in full, and the Board of Directors may, in their 
discretion, by resolution by a majority of the whole Board, declare 
his membership at an end and cause his name to be erased from the 
roll of membership. 

ARTICLE VII. 

DUTIES OF MEMBERS. 

Every member, upon signing the Constitution, pledges himself 
to abide by the same, and also by all By-Laws, Rules and regula- 
tions of the Exchange. 



15 

AETICLE VIII. 

RESIGNATION^ SUSPENSION OR EXPULSION OF MEMBERS. 

Eesignations shall be in writing addressed to the Board of 
Directors, and to be effective must be accepted by the Board. The 
sale or transfer by a member of his only share of stock shall be 
equivalent to his tendering a formal written resignation to the 
Board of Directors. 

Should any member tender his resignation, either in writing 
or by transfer of his only share of stock, while he is in arrears 
for any fines, dues or awards made or imposed by the Board of 
Directors, or any committee having requisite authority, or while 
under investigation for charges before the Committee on Member- 
ship, it shall be competent for the Board at any meeting subsequent 
to accept such resignation and, by a vote of a majority of the 
members present at such meeting, declare that the member resigned 
while in bad standing, or to refuse to accept such resignation, and 
to deal with the party as hereinafter provided, the same as if no 
such resignation had been tendered or transfer of stock made, and 
any declaration or action by the Board of Directors in reference to 
such party shall be posted conspicuously in the Exchange rooms, 
and any party so posted shall not again be admitted to membership 
until after compliance with the provisions of Article IX of the Con- 
stitution relating to re-admission of expelled members. 

Any member of this Exchange who shall be accused of wilfully 
violating the Constitution, By-Laws or Eules, or of fraudulent 
breach of contract, or of any proceeding inconsistent with just and 
equitable principles of trade, or of any other misconduct (with mem- 
bers or non-members of this Exchange) may, on complaint, be sum- 
moned before the Committee on Membership, when, if desired, he 
shall be heard in his defense, and if the charge or charges against 
him be, in the opinion of the Committee, substantiated, the com- 
plaint shall be referred to the Board of Directors, who may, by a 
vote of not less than two-thirds (2/3) of the entire membership of 
the Board, suspend or expel him from the Exchange. 



• / 



16 
ARTICLE IX. 

RE-ADMISSION OF EXPELLED MEMBERS. 

Expelled members desiring re-admission to the Exchange must 
have their applications acted upon by the Committee on Member- 
ship and the Board of Directors as in the case of new members. 
Seven-eighths (yg) of the votes cast shall be necessary to reinstate 
expelled members. 

ARTICLE X. 
Amendments. 

Amendments to the Constitution or By-Laws must be pro- 
posed in writing by twenty-five (25) members, and the proposed 
amendments posted in the Exchange rooms for ten days, after 
which the President shall call a general meeting for the purpose of 
considering their acceptance or rejection; a vote of three-fourths 
of the members present being necessary to ratify the amendment. 



BY-LAWS 



19 



BY-LAWS 

AETICLE I. 

ELECTION OF OFFICERS AND DIRECTORS. 

Section 1. The property and funds of the Association shall 
be managed and held in trust for the Association by the Board of 
Directors, which Board shall consist of the President, Vice-Presi- 
dent, Treasurer and the Directors elected. 

Sec. 2. It shall be the duty of the Board of Directors to ap- 
point three Inspectors of Election not less than five days previous 
to the election, and ten days' notice of the election shall be posted 
in the Exchange rooms. Should any of the Inspectors of Election 
decline or fail to attend, the President shall appoint other persons 
to fill the vacancies ; and, in case of failure to elect Directors on the 
day named for that purpose, the Officers and Directors then in 
office shall hold over until their successors are elected. Polls shall 
be open from 10 a. m. to 2 p. m., in the rooms of the Exchange. 
Each member shall be entitled to one vote in person (or by written 
power of attorney given to any member) by ballot; a majority of 
votes shall elect the persons for whom they shall have been given. 

Sec. 3. The Board of Directors shall enter upon the duties of 
their office on the first Wednesday succeeding their election, and 
-shall continue in office until the first Wednesday following the 
election of their successors. In the event of no election taking 
place on the date aforesaid, the President shall cause another elec- 
tion to be held within thirty days thereafter, and ten days' notice 
of the same shall be posted in the Exchange rooms. 

Sec. 4. At their last regular monthly meeting preceding the 
annual election in each year, the President and Board of Directors 



20 

shall appoint a Nominating Committee consisting of (11) eleven 
members of the Exchange, none of whom shall be members of the 
then Board of Directors. It shall be the duty of this Committee 
to present candidates for all offices to be filled at the next succeed- 
ing annual election. In addition to the nominations presented by 
the Nominating Committee, independent nominations for any office 
may . be made by any member of the Exchange. The names of all 
candidates presented by the Nominating Committee, with the re- 
spective offices for which they are nominated, shall be posted on the 
bulletin of the Exchange for at least ten days prior to the election ; 
the names of the candidates independently nominated shall be 
similarly posted for at least five days prior to the election. 

ARTICLE II. 

MEETINGS AND EXCHANGE HOURS. 

Section 1. Meetings of the Board shall be held on the first 
Wednesday of each month; and the President of the Board may 
call special meetings when deemed necessary, and shall do so when 
requested in writing by three members of the Board. 

Sec. 2. The President shall also call meetings of the Exchange 
when ordered by the Board or when requested to do so in writing 
by twenty-five members of the Exchange, and when present shall 
preside at all meetings, both of the Exchange and the Board. The 
President may also call a meeting of the Exchange whenever, in 
his discretion, he shall deem it necessary. In the absence of the 
President, the Vice-President shall perform the duties of the Presi- 
dent; and in the absence of 'both, a Chairman pro tern, shall be 
appointed, upon whom shall temporarily devolve all the duties of 
the President. At a general meeting, not less than fifty members 
shall constitute a quorum. 

Sec. 3. The opening and closing of the Exchange shall be 
under the exclusive control of the Board of Directors. 



21 . 

AETICLE III. 

BOARD OF DIRECTORS. 

Sectiox 1. The Board of Directors shall have general and 
entire management of the Association not inconsistent with the 
Constitution and By-Laws; shall adopt such rules and regulations 
as they may deem best to carry out the purposes of the Association, 
and to do and perform all such acts as authorized by the Charter; 
have power to hire or lease and fit up such rooms as may be required 
for the purposes of the Exchange, and to appoint the Secretary and 
such subordinate officers or employes, and with such salaries as they 
may deem necessary. 

They shall also have power to appoint a President pi^o tern, 
of the Exchange in case of absence of the President and Vice-Presi- 
dent, and a Treasurer pro tern, in case of absence of the Treasurer. 

Sec. 2. They shall, annually, during the month of November, 
submit to the members a printed statement of the affairs and 
finances of the Exchange, together with an estimate of expenses 
for the ensuing year. 

Sec. 3. They shall appoint the following committees from the 
members of the Exchange, at the first meeting of the Board after 
their election, viz.: 

Committee on Membership. 

Committee on Information and Statistics. 

Finance Committee, to consist of three members of the Board 
of Directors. 

One or more Committees on Arbitration. 

Committee of Appeals. 

And from time to time such other committees as they may 
deem advisable, and define the duties and authoritv thereof. 



22 
AKTICLE IV. 

ADOPTION AND AMENDMENT OF RULES. 

All rules adopted by the Board of Directors shall be in force 
and be binding upon members and visiting members of the Ex- 
change, and shall govern all cases to which they may be applicable, 
after they shall have been posted for ten (10) days in the Exchange 
rooms. 

Any alteration of the rules relating to contracts shall be bind- 
ing on all contracts entered into on and after date of posting same 
in the Exchange rooms. 

AETICLE V. 

COMMITTEE ON MEMBERSHIP. 

The Committee on Membership shall have charge of all applica- 
tions for membership, for visiting membership, and for powers of 
attorney, and of charges against members for improper conduct. 
And it shall be the duty of said Committee to make such reports 
and recommendations on the subjects as they may deem for the 
interest of the Exchange. 

ARTICLE VI. 

COMMITTEE ON INFORMATION AND STATISTICS. 

The Committee on Information and Statistics shall have charge 
of all matters pertaining to supply of newspapers, market reports, 
telegraphic information, and statistical information for the use of 
the Exchange ; and it shall be the duty of said Committee to organize 
plans for obtaining early, reliable and regular information affecting 
the price of cotton from all cotton-producing and all cotton-con- 
suming sections. 

All contracts proposed, to be made by said Committee for 
obtaining telegraphic information shall be approved by the Board 
of Directors. 



23 

AETICLE YII. 

COMMITTEE OX SPOT QUOTATIOXS. 

A Committee on Spot Quotations to consist of not less than 
three (3) members of the Board of Classers shall be appointed an- 
nually by the Board of Directors at its first meeting in December^ 
and vacancies in said Committee from any canse shall be filled by 
the Board of Directors as occasion may require. It shall be the 
duty of said Committee to meet at such hours as may be designated 
by the Board of Directors and a majority of the members thereof 
shall constitute a quorum. 

A"t each daily meeting, the Committee shall establish and an- 
nounce the quotations for Spot Cotton as sold in this market by 
factors and others on spot terms which shall show the actual com- 
mercial differences between grades in the manner and under the 
conditions prescribed in the United States Cotton Futures Act, 
Section 6, and in accordance with such rulings as the Secretary of 
Agriculture may from time to time promulgate. 

Whenever the value of one grade is to be determined from the 
sale or sales of spot cotton of another grade or grades, such value 
shall be fixed in accordance with rules and regulations which shall 
be prescribed for the purpose by the Secretary of Agriculture. 

The Committee may at their discretion take into consideration 
bona fide offers to buy or sell spot cotton and base their quotations 
accordingly. 

All quotations shall be based upon the Standards of this market 
as adopted by this Exchange and said quotations shall be posted 
prominently in the Exchange Eooms. 

AETICLE YIII. 

FIXAXCE COMMITTEE. 

The Finance Committee shall audit all bills, exercise a general 
supervision over the financial affairs of the Exchange, direct and 



" . ■ 24 

control all investments of the funds of the Exchange, and annually 
audit the accounts of the Treasurer, and report to the Board of 
Directors monthly. 

AETICLE IX. 

ARBITRATION COMMITTEE. 

An Arbitration Committee, to consist of nine members, to be 
appointed annually by the Board of Directors, at their first meet- 
ing, for the purpose of hearing and deciding claims of members 
against each other, arising from transactions in spot, future con- 
tracts and free on board cotton. Said Committee shall have the 
settlement of all such claims (subject only to the right of appeal 
to the Committee of Appeals, which appeal shall be made within 
three business days after receipt of the decision of the Arbitrators), 
•excepting such as may arise from questions of classification of cotton, 
which shall be determined by a committee or committees of experts, 
to be appointed in such manner as the Board of Directors may see fit. 

Each arbitrator acting on any one case shall be paid Five ($5) 
Dollars for such case, and the arbitrators in the award shall decide 
by whom the expenses of the arbitration shall be paid. 

In addition to the above, the Board of Directors shall have 
power to appoint, from time to time, such additional Arbitration 
Committees as they may deem advisable. 

ARTICLE X. 

COMMITTEE OF APPEALS. 

A Committee of Appeals shall be appointed by the Board of 
Directors and shall consist of seven (7) members of the Exchange, 
five (5) of whom shall constitute a quorum for the purpose of hear- 
ing and deciding such matters arising from transactions in spot, 
future contract and free on board cotton as may be submitted to 



25 

them on appeal from decision of the Arbitration Committee author- 
ized under the first paragraph of Article 9 of the By-Laws. 

All expenses attending such appeal, unless otherwise decided 
by said Appeal Committee, shall be borne by the party whose claim 
differs most from the final award, including costs of arbitration 
appealed from, and a fee of Five ($5) Dollars for each member of 
said Appeal Committee acting on such appeal. 

The Board of Directors may by rule provide for such other 
Appeal Committee on matters not appertaining to cotton as it may 
deem fit to appoint in connection with arbitratioDs on such matters. 

ARTICLE XI. 

THE SECRETARY. 

The Secretary shall keep accurate minutes of the meetings of 
the Exchange and the Board; he shall cause notice to be posted on 
the bulletins, and otherwise, as may be directed by the President 
or the Board, of all meetings of the Exchange, and give notice in 
w-riting of all the meetings of the Board. 

ARTICLE XIL 

THE TREASURER. 

The Treasurer shall give bond, with security, for such amount 
as the Board of Directors may require. 

He shall receive all funds belonging or payable to the Exchange 
and deposit them in the bank in the name of The New Orleans 
CoTTOX ExcHAXGE. All checks shall be signed by the Treasurer 
-and countersigned by the President or Acting President. 

He shall pay all bills against the Exchange when certified by 
the Finance Committee or authorized by the Board ; he shall have 
•custody of the corporate seal; he shall keep an account of all re- 
ceipts and disbursements in a book to be kept for that purpose, 



26 

subject at all times to the examination of the Finance Committee 
and the Board of Directors ; he shall render a report at each regular 
meeting of the Board, and a general annual report at the close of 
each year; and at the expiration of his term of office he shall trans- 
fer to his successor all funds, books, papers and other property of 
the Exchange in his possession. 

AETICLE XIII. 

APPLICATIONS FOR MEMBERSHIP. 

All applications for membership must be made to the Com- 
mittee on Membership, and such as are recommended by the Com- 
mittee shall be submitted to the Board of Directors, and such as 
are recommended by the Board of Directors shall be posted at the 
general meeting-room of the Exchange for ten days before being 
balloted for, with notice of the time at which such balloting will 
take place. The balloting shall be at the general Exchange rooms, 
and election day shall be every Wednesday. The polls shall be 
opened at 10 o'clock a. m., and close at 4 p. m. Each elector shall 
cast one ballot — if in favor of the candidate, the word "yes"; if 
against, the word "no," written or printed thereon. Three-fourths 
(%) of the whole number of votes cast shall be required in favor 
of applicants to entitle them to membership. The Superintendent 
of Exchange, or his assistant, shall act as teller, and register the 
names of voters as polled. Two members of the Board of Directors 
or any of the sub-committees, shall be present at the counting of the 
votes cast, and they shall post the result over their signatures, on 
the bulletin of the Exchange, with reasonable dispatch. No name, 
after being rejected, shall be again proposed within six months after 
such rejection, except upon the written application of fifty members 
in good standing; and upon receipt of such application the Board 
of Directors shall, within a period of ten days thereafter, order a 
second ballot to be taken; and, in case of a second rejection, said 



27 

name cannot be proposed within twelve months of such rejection. 
Each member shall, within ten days after receiving notice of his 
election, sign the Constitution and pay to the Treasurer the annual 
dues, as provided in the Constitution. 

AETICLE XIV. 

SETTLEMENT OF CLAIMS OF MEMBEKS. 

All claims, disputes, differences and controversies between 
members of the Exchange, arising out of any transaction in spot, 
future delivery or free on board cotton, shall be subjects of and de- 
termined by arbitration, if notice in writing of such claim, dispute, 
difference or controversy, and of the intention to demand an arbitra- 
tion thereon, be served by either party upon the opposite party or 
parties thereto within ten (10) days from the discovery thereof, 
but not otherwise. The Superintendent of the Exchange shall draw 
by lot three members from among the nine members of the Arbitra- 
tion Committee to serve in each case submitted for arbitration, who 
shall hear and determine the matter at issue. No memj)er of the 
Committee who may be interested either as principal or broker in 
any case submitted for arbitration shall be competent to serve on 
such case; provided, that any party litigant shall be entitled to de- 
mand that the entire Committee shall act upon the case at issue. 
The decision of this Committee shall be binding, subject only to an 
appeal to the Appeal Committee, which appeal shall be made within 
three (3) business days after notice has been given of such decision, 
accompanied by a certified copy of same. 

All claims, disputes, differences and controversies between 
members of the Exchange arising out of transactions other than 
in cotton within the scope of Article II of the Constitution, shall 
be subjects of and determined by arbitration before such committees 
and in such manner as may be determined upon by rules adopted 
by the Board of Directors. 



28 
AllTICLE XY. 

COMPLAINTS OF MEMBERS. 

Section 1. If complaint is made against a member under 
Article VIII of the Constitution, it must be in writing;, addressed 
to the Committee on Membership, specifying the particular act com- 
plained of, together with all the documentary evidence bearing on 
the case, and a list of names of witnesses whom he may desire to be 
examined on said complaint. The Chairman of the Committee shall 
cause copies to be served on the member complained of ; and it shall 
be the duty of the said member, within five days of the receipt of 
the same, to return them to the Committee with his written answer 
to the complaint, and all documents bearing on the case in his 
possession, with the names of witnesses whom he desires shall be 
summoned. The Chairman shall, as soon as expedient, after receipt 
of said answer, or, if no answer is received, after the expiration of 
five days from service of the copies of complaint, notify both parties 
and the witnesses named, of the time and place at which the Com- 
mittee will meet to act on said complaint. If, after the examina- 
tion, the Committee deem the charges substantiated, they shall so 
report to the Board of Directors, and deliver to the Board all docu- 
ments relating thereto. 

Sec. 2. The Board of Directors may, at their discretion, act 
upon the documentary evidence, or may call parties or such wit- 
nesses as they may desire to examine in the case before them; but 
one party shall not be called before the Board of Directors without 
giving the other party an opportunity of being present at the same 
time. 

ARTICLE XVI. 

POWERS OF ATTORNEY. 

Xo Power of Attorney shall be granted to any person to do 
business on the floor of the Exchange for account of any member 



At a General Meeting of the New Orleans Cotton Exchange 
held October 3rd, 1921, the following amendment to Article XVI 
of the By-Laws was adopted, viz: 

AMENDMENT TO BY-LAWS 

Article XVI 

Pages 28-29 Edition of 1920. 

Amend the first paragraph of Article XVI of the By-Laws by 
insertion of the following at the end of said paragraph: 

Provided, in case of sickness or temporary abseuce from the 
city w^hich temporarily incapacitates him from attendance on the 
Exchange, a member regularly residing in New Orleans may on 
written application, accompanied by power of attorney binding him- 
self (or his principal should the member be a clerk) in the prem- 
ises, which application shall be approved by the Committee on 
Membership of the Exchange, empower his bona fide partner or 
bona fide clerk or associate clerk to perform such functions in 
connection with trading on the floor of the Exchange as he might 
do if personally present. The period of such authorization not to 
exceed fifteen days, provided that the time may be extended for 
fifteen days additional on approval of the Committee on Member- 
ship; provided further that no partner or clerk authorized under 
this clause shall transact business in his own name; provided fur- 
ther that notice of all authorizations granted under this clause 
shall be posted prominently in the Exchange rooms and shall re- 
main so posted during period of authorization. 



29 

or firm, unless such person be a full member of this Exchange, nor 
can any member be represented in any manner on the floor of the 
Exchange by any person not a full member. 

In case of sickness or absence from the city of a member, he 
may, by simple written authorization, empower his hona fide recog- 
nized partner or clerk to visit the Exchange in his stead, for the 
sole purpose of obtaining news or information. 

Any member, upon approval of the Committee on Membership,, 
may obtain admission to the Exchange floor for his hotia fide clerk 
or clerks, for the sole purpose of obtaining news or information, by 
payment, for each clerk, of the same dues as are now or may here- 
after be paid by members. It being provided that no party admitted 
under this clause shall be allowed to transact business in the Ex- 
change, either in his own name or that of his principal; nor shall 
any power of attorney or clerk, who is not a full member, under any 
circumstances, transact business on the floor of the Exchange for 
his own account. 

Members paying for admission of clerks under this Article may 
change their representatives during the period paid for, without 
additional charge, on approval of the Committee on Membership. 

Clerks admitted under this Article shall be subject to all rules 
of order applicable to members, and the Board of Directors ma3% at 
its discretion, require principals to change such Powers of Attorney 
or clerks representing them on the floor of the Exchange. 

ARTICLE XVI-A. 

During the present war, upon written application, duly ap-^ 
proved by the Committee on Membership and by vote of three- 
fourths of the members of the Board of Directors, any member 
who is serving in the Army or Navy of the United States may be 
represented by his hona fide partner or clerk or associate in the 
exercise of his privileges of membership. It being provided that 



30 

no party admitted under this Article shall be allowed to transact 
business in his own name. Applications under this Article shall 
be posted in the Exchange rooms for ten days before being acted 
upon by the Board of Directors. 

AETICLE XVII. 

MOTIONS. 

No notice shall be taken at any meeting of the Exchange of 
any resolutions unless submitted in writing. 

AETICLE XVIII. 

CONTRACTS. 

Section 1. No contract to be made on 'Change, unless both 
parties to the same are members of the Exchange. 

Sec. 2. All contracts falling due on legal holidays, or such 
holidays as are prescribed by the By-Laws or ordered by the Ex- 
change, shall be completed on the preceding day, and when notice 
of five (5) days is required such notice shall be given at least five 
(5) days previous to the day preceding such holiday. 

AETICLE XIX. 

vacancies. 

All vacancies that may occur in the Board of Directors by 
death, resignation or otherwise, may be filled by the Board at any 
regular meeting. 

AETICLE XX. 

committee on credits and legislation. 

Section 1. The Board of Directors shall appoint a "Com- 
mittee on Credits," to consist of three members, whose duty it shall 



31 

be to take cognizance of all violations of commercial integrity, 
honor and good faith, represented to them by members of this Ex- 
change, whether such charges are made against cotton factors, cotton 
buyers or brokers of the City of New Orleans, or against merchants 
or planters in the country. 

Sec. 2. This Committee shall keep, in a book prepared for 
that purpose, a record of all such charges as may be made, alpha- 
betically arranged, which book shall at all times be open to the mem- 
bers of this Exchange. It is understood, however, that this Com- 
mittee has no control over charges made against members of this 
Exchange, which charges properly come under the supervision of 
the Committee of Membership.* 

AETICLE XXI. 

COMMITTEE ON^ BOOKS. 

The President shall appoint a Committee of two, who shall 
examine the books of the Exchange, and report to the Board of 
Directors at their regular meeting in N"ovember. 



* For other duties of Committee on Legislation, see Rule 13, General Rules. 



SALE AND DELIVERY OF COTTON 
EX-WAREHOUSE. 



(Adoptc.l 
K.x,,u„f 


l)y Ihi' B.ra 

igust (itil, 1 

IT "f c-ottrai 
v(ov tl.o fo 


rd ( 

1. 3, 
lluwi 


)f Dircctm 
: effective 

4 nrnl 5, 
warehouse, 


August 
of Kulo 


St Otl 
IGth, 

2, go, 


1, 11130 

liiao), 

iTining 
rend, i 


; posted 

the sale 
ind sul)- 


slitutc tlui 





1 days froin date of sale 



Payment and Time for Delivery. 



LE 2. KlX. 
:. 2. (a) 



jections. 

Sec. (i. Tlie seller simll have the li^'hf to :i>l; i.m ;, rcrtillod 
■check in settlement of any invoice to M-lii.li ncirutialili.' (Kituments 
are attached hefore ?urrcTKlerin;r sudi iii-^MtinMi.' il(iciinn.'nts: pro- 
vided, request for ccrtilifd iliivk i- iili.I.' htrmr l"^ nVloc-k noon. 

Other Methods of Receiving and Delivering. 

Sec. 7. Nothing in the Spot Kiik-s uf the New Orleans Cotton 
Exchange shall he construed as preventing huyers and sellers from 
agreeing upon any other method for the (lelivery and receipt of 



35 



SALE AND DELIVERY OF COTTON 
EX-WAREHOUSE* 

EECEIPTS AND PAYMENTS. 
Manner of Selling — ^When Agreement to Sell Is Final. 

EuLE 1. • Section 1. Sellers shall offer cotton for sale as 
straight cotton, each sample not varying more than one full grade, 
based on U. S. Government Standards. Any sample showing a 
Tariation of more than one full grade shall be sold accordingly. 

Sec. 2. A contract for the sale of cotton shall be deemed final 
when the price has been agreed upon between the seller and the 
buyer; provided, in the case of a sale to a broker, the name of the 
hnyer is accepted by the seller. 

PAYMENT AND TIME FOR DELIVEEY. 

EuLE 2. Section 1. All cotton sold ex-warehouse shall be 
billed by the seller, with negotiable warehouse receipts attached to 
invoice, on actual or estimated weights on the day on which the 
•cotton is ordered for delivery; provided, however, that should the 
€otton not be ordered by the buyer by the end of the ninth running 
-day after date of sale, the seller shall then have the right to bill 
it on the tenth day after date of sale in the manner above set forth. 
In this event buyer must accept delivery within fifteen running 
days from date of sale; or seller has the right, after giving one 
day's notice to buyer, to proceed to have the cotton weighed and 
to demand final settlement in accordance with such weights. 

Sec. 2. Should the buyer notify the seller, in writing, with- 
in three days from date of sale that he is unable to arrange with 
warehouse for delivery in the ten (10) day limit, the seller must 
ihen wait until the cotton is turned out and ready for delivery be- 
fore invoicing, with warehouse receipt attached. 



36 

Sec. 3. In default of payment as above, the seller shall have 
the right to re-sell the cotton for account of the buyer. The seller 
shall have the right to collect from the buyer any and all charges 
for extra storage, insurance and interest that may have accrued 
after the expiration of time allowed under this Eule, until the time 
the cotton is finally taken by the party to whom it is sold for buyer's 
account, as herein provided. 

Sec. 4. The buyer shall assume all charges of insurance and 
storage after payment of invoice ; provided, however, that the seller 
shall give to the buyer, without cost, the benefit of any unexpired 
storage that may run on the cotton. 

Sec. 5. Final settlements shall be made on actua;l weights of 
the cotton received by the buyer and bill for final settlement shall 
be payable on the first business day after the day on which the 
cotton has been weighed. Any difference between the preliminary 
and final invoices in excess of 5 per cent variation either way shall 
be subject to mutual settlement as to interest. Should there be 
any rejections, the buyer shall, in rendering bill for final settlement, 
attach to his invoice warehouse receipts covering said rejections. 

Sec. 6. The seller shall have the right to ask for a certified 
check in settlement of any invoice to which negotiable documents 
are attached before surrendering such negotiable documents; pro- 
vided, request for certified check is made before 12 o'clock noon. 

Other Method of Eeceiving and Delivebing. 

Sec. 7. Nothing in the Spot Kules of the New Orleans Cotton 
Exchange shall be construed as preventing buyers and sellers from 
agreeing upon any other method for the delivery and receipt of 
cotton. 

INSPECTING, SAMPLING AND CLASSING. 

Rule 3. Sec. 1. Upon written request to the Exchange, all 
cotton received at the Public Warehouse or at other City War^ 



37 

houses on storage, shall on arrival be sampled on both sides of the 
bale, and inspected in the head, by samplers and inspectors em- 
ployed and duly licensed by the New Orleans Cotton Exchange. 
Sufficient cotton shall be taken from the bales to furnish the seller 
with a six-ounce sample and to furnish, through the Exchange, to 
the representatives of the United States Department of Agriculture, 
an additional eight ounce sample so that in event the cotton is 
to be certificated for delivery on Future Contracts the eight ounce 
sample so furnished can be divided into two four ounce samples as 
required by the regulations of the Secretary of Agriculture. 

Any conditions not indicated by the samples shall be specified 
by the inspector or sampler of the cotton in a written memorandum 
which shall accompany the samples, and also noted on the samples. 

Buyers to accept Exchange reserve sample as their sample, 
provided that, should buyers desire to resample the cotton, this may 
be done only after the cotton is weighed, and at buyer's expense; 
provided further, that any storer may have his own samplers sample 
his cotton, should he so desire, and offer the cotton so sampled 
accordingly, in which event the buyer has the right to resample the 
bales before weighing. 

Sec. 2. The 'New Orleans Cotton Exchange will guarantee the 
correctness of its inspection and reserve samples so long as such 
samples remain in possession of the Exchange and the bales re- 
main stored in warehouse (State-owned or independent) under its 
jurisdiction. 

Sec. 3. When cotton which has been inspected and sampled 
by the Exchange is sold, the buyer may have the reserve samples 
exposed for examination by him in the Exchange rooms, and in 
event of any claims for differences, must notify the seller on the 
same day. He may call on the seller for his samples, which releases 
seller from all responsibility. 



38 

When cotton which has been inspected and sampled by the 
Exchange is sold, the disposition of the samples is to be made as 
follows : 

The buyer has the option of either: 

1. Obtaining reserve samples from the Cotton Exchange; 
or, of 

2. Obtaining seller's samples, in which event the seller may 
obtain the reserve samples when the cotton is shipped. 

The cost attending sampling, inspecting, etc., including Ex- 
change fee, is to be equally divided between buyer and seller. 

Heserve samples shall be removed within thirty days after the 
cotton has been shipped from the storage place, and notice of ship- 
ment has been given original storer by the Exchange, after which 
they become the property of the Exchange. On special request the 
Exchange may hold the samples longer than thirty days. 

Sec. 4. The New Orleans Cotton Exchange, when so requested, 
shall class and/or staple the reserve samples or other samples sub- 
mitted not for delivery on Future Contracts, issuing therefor class 
and/or staple sheets or certificates as may be desired. 

The classification of cotton tendered on Future Contracts can 
only be determined by the Board of Cotton Examiners designated 
by the Chief of the Bureau of Markets of the Department of Agri- 
culture. 

Sec. 5. The fees for inspecting, classing and grading and 
custody of samples under the Spot Eules shall be fixed by the Board 
of Directors, who shall have the Treasurer of the Exchange keep a 
separate account therefor. 

REJECTIONS, BAGGING AND TIES. 
Causes for Eejection. 

EuLE 4. There shall be no rejections by the buyer on cotton 
inspected and sampled by the New Orleans Cotton Exchange, if 



39 

the duplicate sample held by the Exchange is equal to the seller's 
sample ; in the event that a buyer avails himself of his privilege of 
resampling the cotton there shall be no rejections if the redrawn 
sample equals the seller's samples; provided, that the seller must 
sell as such any or all irregular cotton so reported by the Exchange, 
or samples showing a difference of more than one full grade. 

When the bales are inspected and sampled by the seller, and not 
by the ^ew Orleans Cotton Exchange, the buyer shall have the right 
to reject all seedy, false-packed, mixed, dusty, sandy, gin-cut, re- 
baled cotton or cotton of perished staple or immature staple, un- 
less it has been sold as such; also any cotton lower in grade than 
the lowest grade represented in the seller's samples. No other 
cotton shall be rejected when equal in quality to the sample by 
which it has been sold, if the sample has been fairly exhibited. 

COMPELS ATIOX FOE GEADES OX AYEEAGE PEICE. 

EuLE 5. Where cotton of various grades has been sold at a 
uniform price, and the rejections are above the average grade of 
the list, the seller shall make good to the buyer the difference in 
value between the rejected bales and the average of the list, and 
where rejections are below the average of the list the buyer shall, in 
like manner, make good the difference in value to the seller. All 
such differences to be determined by the samples of the seller. 

LIGHT-WEIGHT BALES. 

EuLE 6. Any bale of cotton weighing less than three hundred 
pounds shall be deemed unmerchantable, and may be rejected by 
the buyer. 

NUMBEE AND WEIGHT OF TIES. 

EuLE 7. Section 1. Six iron ties, not exceeding in weight 
twelve (12) pounds in the aggregate, shall be considered sufficient 



40 

for each uncompressed bale of cotton. Any excess shall, at the 
option of the buyer, be removed from the bale or be deducted from 
the gross weight. If a bale has less than six ties, allowance shall 
be made to the seller, the ties to be put on by the press at the ex- 
pense of the seller. 

Sec. 2. Where compressed bales are sold ex-warehouse and 
have seven (7) ties, no deduction is to be made for the seventh tie. 

Sec. 3. When compressed cotton is sold ex-warehouse, the 
buyer shall pay the seller the current cost of compressing in New 
Orleans on such bales ; provided, that if the cotton is high densitied, 
the buyer must be so notified at time of sale and pay compressing 
accordingly. 

Sec. 4. Where a bale has more than seven (7) ties, allowance 
therefor shall be made by the seller at the rate of l%o pounds per 
tie. 

Sec. 5. Compressed bales shall be settled for at actual weight, 
provided that allowance shall be made for any excess ties and 
bagging as provided for in the Eules. 

Sec. 6. Wlien uncompressed cotton is received, sampled and 
inspected by the Cotton Exchange and compressed on arrival, a 
patch weighing not exceeding three pounds may be put on the bale 
at the expense and for the benefit of the consignor or owner. 

TARE— METHOD OF ASCERTAINING. 

Rule 8. The amount of bagging used to cover any bale shall 
not exceed three and nine-sixteenths per cent of the weight of such 
bale, less the weight of the ties. Due allowance shall be made for 
any excess. 

The actual tare shall be ascertained as follows : .When the 
lot numbers 50, or less, bales, 5 bales; when more than 50, up to 
70, inclusive, 7 bales ; and more than 70 bales, 10 bales ; or more or 
less, as may be agreed upon, shall be taken indiscriminately, 



No. 3. 

AMENDMENT TO RULE 7 OF THE EX-WAREHOUSE 
RULES OF THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted b}^ the Board of Directors June 2nd^ 1920; Posted J^ 

June 2nd, 1920; effective June 12th, 1920.) 1 

\| 

Expunge Section 2, as it now reads, and substitute therefor ■ 

the following: 

"Where standard compressed bales are sold ex-warehouse and 
have seven (7) ties, no deduction is to be made for the seventh 
tie. In the case of high-density compressed bales with nine (9) 
ties, no deduction shall be made for ties." 

^ ^ ^ 

Expunge Section 4, as it now reads, and substitute therefor 
the following: 

"Where a standard compressed bale has more than seven (7) 
ties, allowance therefor shall be made by the seller at the rate of 
one and three-tenths (1 3/10) pounds per tie; provided that in 
case of a high-density compressed bale having more than nine (9) 
ties, allowance therefor shall be made by the seller at the rate of 
one pound per extra tie." 




.^mMWi I n^i 



1 



Mimm 



^mm^^mmMM 



No. 17. 

AMENDMENT TO SECTION 3 OF RULE 7 OF THE 
EX-WAREHOUSE RULES OF THE NEW 
ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors September 7th, 1921; Posted 
September 7th, 1921; effective September 17th, 1921.) 

Amend Section 3 of Enle 7, of the Ex-warehouse Eules, page 
by expunging the section as it now stands and substituting 
therefor the following : 

Sec. 3. When compressed cotton is sold Ex-warehouse the buyer 
shall pay the seller 75 cents per bale on all such cotton wherever 
stored, except such cotton as was compressed at and by the Dock 
Board Warehouse since September 1st, 1920, in which case the 
charge shall be 60 cents, providing that if the cotton is high 
densitied the buyer must be so notified at time of sale and pay com- 
pressing accordingly. 



41 

weighed and then stripped of the bagging. The tare shall be as- 
certained as follows : 

To calculate the allowance, the proportion of excess bagging 
over the S%q per cent shall be ascertained on the number of test 
bales. This proportion of excess, if any, shall then be applied on 
the gross weight of the entire lot after the weight of ties has been 
deducted. 

Example. 

Given 100 bales weight 49,500 lbs. 

Select 10 bales, weighing, say 4,860 lbs. 

Deduct for ties, 7 at l%o lbs. per bale 

"To arrive" (Rule 22) 91 lbs. 

Weight of cotton and bagging 4,769 lbs. 

Tare allowed under Rule 169.90, 3%6% of 4,769 lbs. 

Actual tare (bagging) 191.53, 4.01% of 4,769 lbs. 

.45% excess tare 

Weight 100 bales (gross) 49,500 lbs. 

Less the ties 910 lbs. 

Weight of cotton and bagging. 48,590 lbs. 

Therefore, the excess tare claim is .45 per cent of 48.590 
pounds, or 218.66 pounds. 

If the representative of the buyer and seller cannot agree in 
selecting the bales to be tared, the Chief Supervisor of the New 
Orleans Cotton Exchange shall appoint some one to make such 
selection. 

If any claim for excess tare be established, the seller shall pay 
all expenses incurred in making the test ; otherwise, the buyer. 



42 

UNMEECHANTABLE BAGGING. 

EuLE 9. All bagging which contains substances which may 
damage or which, when wet, will stain cotton, shall be considered 
unmerchantable; and all cotton covered therewith shall be re-cov-^ 
ered with merchantable bagging at the expense of the seller. 

GUAEANTEE OF MEECHANTABLE COTTON. 

EuLE 10. Section 1. All sales of cotton, unless otherwise pro- 
vided for at the time of sale, shall be deemed to have been made 
under a guarantee of its being in merchantable condition and m 
good order for immediate shipment, especially as to at least one 
space on the top side for re-marking, the Cotton Exchange Weigher 
to determine the condition of the bale. Buyers shall have the right, 
to reject any cotton delivered in bad order or in a damaged con 
dition, unless it can be put in order within the two days following 
delivery of the list. 

Sec. 2. When the Chief Supervisor, the Assistant Chief' 
Supervisor, or any of the Supervisors of the Exchange are called! 
by parties to determine whether a bale of cotton is not in merchant- 
able condition, a charge of five cents a bale shall be paid to the Ex- 
change by the party differing most from the award. 

DELIVEEY AND INSPECTION. 

When Delivery Is Completed. 

Eule 11. The delivery of cotton shall be deemed to have beeni 
completed as it passes the scales, but the seller shall have an in- 
surable interest in same until paid for. In like manner, where pay- 
ments on account are made by the buyer prior to actual delivery, he- 
shall be deemed to have an insurable interest in the cotton, and may 
require from the seller an assignment of his policy of insurance tO' 
the extent of such payments. 



No. 6. 



AMENDMENT TO EX-WAREHOUSE RULES 

OF THE NEW ORLEANS COTTON 

EXCHANGE. 



(Adopted by the Board of Directors June 10th, 1920; Posted 
June 10th, 1920; Effective on and after June 21st, 1920.) 

Amend Eule 10 of the Ex- Warehouse Rules by inserting the 
following as Section 3 : 

Sec. 3. Presses and warehouses must assume all responsibility 
for loss or damage to cotton for which a clean receipt has been 
issued. 



\ 



No. 12. 

Amendment to Rule lo of the Ex-Warehouse 
Rules of the New Orleans Cotton Exchange* 

(Adopted by the Board of Directors February 2nd, 1921; posted 
February 2nd, 1921; effective February 12th, 1921.) 

Amend Section 3 of Rule 10 of the Ex-Warehouse Rules as 
amended June 10th, 1920, by addition of the following, viz: 

"Except for concealed damage or damage caused by an Act of 
Providence." 

The Section as amended will, then read as follows : 

EX-WAREHOUSE RULE 10. 

"Sec. 3. Presses and warehouses must assume all responsibility 
for loss or damage to cotton for which a clean receipt has been is- 
sued, except for concealed damage or damage caused by an Act of 
Providence." 



43 

DUTIES OF BUYEES, SELLERS AXD BROKERS. 
Transactions Between Members and Non-Members. 

Rule 12. Members of the Exchange, when purchasing cotton 
from or selling cotton to parties who are not members, shall etipu- 
late that such purchase or sale shall be governed by the Rules of the 
Exchange, including those relating to supervision and inspection. 

Brokers, when purchasing for parties who are not members of 
the Exchange, shall in each instance be required to inform the seller 
of that fact, and also to give the name" of the buyer. In event of 
this clause not being observed, the broker shall be held responsible,, 
under the Rules, for any infringement thereof that may occur. 

WEIGHING AND RE-WEIGHING. 
Duties of Sellers' and Buyers' Weighers. 

Rule 13. Cotton shall be weighed, when required by the seller,, 
by a sworn licensed weigher appointed by the New Orleans Cotton 
Exchange, who shall represent both the seller and the buyer; pro- 
vided, that should any allowance be necessary, for any cause, a 
second sworn, licensed weigher shall be appointed ; in the event the 
two weighers cannot agree on the allowanace to be made, a third 
weigher shall be appointed as umpire. 

If the Cotton Exchange is not called upon by the seller to- 
weigh the cotton, the seller's weigher shall not weigh any cotton 
for delivery, without the presence of the buyer's re-weigher, unless 
he shall have first given notice to the buyer's re-weigher, or to the 
buyer's classer, of his readiness to weigh the same at a time which 
he shall specify; should the buyer's re- weigher fail to be present at 
the time specified in said notice, a further delay of two hours shall 
be allowed, at the expiration of which time the seller's weigher may 
proceed with the weighing of the cotton without the presence of the 
buyer's re-weigher. 



44 

TESTING SCALES. 

EuLE 14. A duly authorized official of the Cotton Exchange 
shall test weighers' scales as often as necessary and at least once a 
week. . 

EECLAMATIONS. 

Claims for Irregularities — Falsely Packed Cotton. 

EuLE 15. After cotton has been examined, received and passed 
upon by the broker or other agent of the buyer, no claim shall be 
made upon the seller except for fraudulent or false packing and the 
allowance provided for in Etile No. 4. 

.Falsely or fraudulently packed cotton shall be defined as fol- 
lows: Such bales^ as may contain any foreign substance, water- 
packed bales, or bales containing damaged cotton in the interior 
without any indication of such damage upon the exterior of the 
bale ; also such bales as are plated — i. e., composed of good cotton 
upon the exterior and decidedly inferior cotton in the interior of 
the bales, in such manner as not to be detected without opening 
the same. 

FOEMS FOE EECLAMATION. 

EuLE 16. When claims are made they shall be in writing, 
giving the shipping marks and numbers, also the planter's and all 
■other legible marks; and a separate certificate shall be given for 
■each bale, except where two or more bales bear the same planter's 
marks. The certificate shall also state the particulars of the fraud- 
ulent or false packing, and shall be verified by oath or affirmation. 

LIMIT OF TIME. 

EuLE 17. In all cases where cotton is re-stored and held in 
tills city, such claims shall be good against the seller for 100 days 
from date of sale, and where the cotton has been exported to a 



45 

foreign or domestic port the certificates and claim shall be dated 
within 100 days from the date of the arrival of the vessel carrying 
such cotton at her port of destination, and presented to the seller 
here, if from a foreign country, within thirty days, and if from an. 
American mill, within ten days from date of claim. 

AEBITEATIONS AND RECLAMATIONS. 

EuLE 18. All claims made out in conformity with the fore- 
going regulations shall be deemed prima facie valid in favor of the 
claimant, and can only be defeated by a decision of the Committee 
on Arbitration, or of the Committee of Appeals of the Exchange. 

RECLAMATIONS ON COTTON STORED IN 
NEW ORLEANS. 

Rule 19. Cotton bought and sold here, if found to be falsely 
or fraudulently packed, shall be returned within 100 days from date 
of sale to the seller, who shall pay for the same by the weight, and 
at the market value of the cotton of the grade shown by the original, 
sample hole, at the time it shall be so returned. 

COMMISSIONS. 

On Buying and Selling. 

Rule 20. Commissions for buying and selling shall be such as 
may be mutually agreed upon. 



RULES GOVERNING COTTON 
TO ARRIVE 



N"o. 19. 

AMENDMENT TO RULE 1 OF THE RULES GOVERN- 
ING COTTON TO ARRIVE OF THE NEW 
ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors September 7th, 1921; Posted 
September 7th, 1921; effective September 17th, 1921.) 

Amend Enle 1 of the Eules Governing Cotton To-Arrive by 
expunging the second paragraph and substituting therefor the fol- 
lowing : 

The buyer to pay drayage and 75 cents per bale compressing 
provided that if the cotton is high densitied the buyer must be so 
notified at the time of sale and pay compressing accordingly. 
Each party shall pay his own sampling, Cotton Exchange Super- 
vision and Levee Inspection fees to be paid by the buyer on all 
cotton sold To-Arrive. 

The Eule as amended will read as follows : 

When cotton to-arrive is sold, the price agreed upon in the con- 
tract shall include freight to Kew Orleans and ranging, but shall 
be exclusive of insurance if shipped all rail ; freight and ranging 
to be deducted from invoice and paid for by the buyer. 

The buyer to pay drayage and 75 cents per bale compressing pro- 
vided that if the cotton is high densitied the buyer must be so 
notified at the time of sale and pay compressing accordingly. 
Each party shall pay his own sampling. Cotton Exchange Super- 
vision and Levee Inspection fees to be paid by the buyer on all 
cotton sold To-Arrive. 




■ 'Miiii!«mi*^'fji»f* ^i 



Mff^wm^ 



i 



49 



RULES GOVERNING COTTON 
TO ARRIVE. 



EULE 1. 



When cotton to arrive is sold, the price agreed upon in the 
contract shall include freight to New Orleans and ranging, but 
shall be exclusive of insurance if shipped all rail ; freight and rang- 
ing to be deducted from invoice and paid for by the buyer. 

The buyer to pay drayage and the current cost of compressing 
in New Orleans ; provided, that if the cotton is high densitied, the 
buyer must be so notified at time of sale and pay compressing ac- 
■cordingly. Each party shall pay his own sampling. Cotton Ex- 
change supervision and levee inspection' fees to be paid by the buyer 
on all cotton sold to arrive. 

EULE 2. 

All cotton sold on actual samples shall be at buyer's risk as soon 
as the terms of sale are agreed upon, provided railroad bill of lading 
is already signed, or as soon as it is signed thereafter; provided, 
however, that the documents must be delivered to the buyer; when 
•sold on description it shall be at buyer's risk from the time railroad 
bill of lading is signed, provided he is given marks and name of 
shipper by the seller, prior to known loss. 

EuLE 3. 

When cotton is sold "to arrive" for delivery at New Orleans 
by or within a certain specified time, with the condition ^'barring 
fire" payment for same shall be demanded not more than ten (10) 



50 



days prior to the first day on which the cotton may be delivered; 
on such sales the cotton shall be at buyer's risk from time railroad 
bill of lading is signed, as provided in Rule 2 ; but should the cotton 
not arrive in New Orleans within the time specified, the buyer's risk 
on such cotton shall not extend beyond such date (except by mutual 
agreement) ; and in the event of the seller's replacing such cotton 
with cotton on the spot, the buyer must subrogate the seller his in- 
surance on the original shipment. 

Rule 4. 

When cotton is sold "to arrive" for delivery at New Orleans 
by or within a certain specified time, without the condition "barring 
fire/' payment for same shall not be due until the arrival of the 
cotton at New Orleans, and the cotton shall be at the seller's risk 
until such payment is made. 

Rule 5. 

Unless any special time is agreed upon between the buyer and 
seller, all cotton sold "to arrive" shall be shipped from the in- 
terior point at which it is purchased within ten (10) days from 
the date of contract, weather permitting, and barring obstacles over 
which the interior shipper has no control, due proof of which shall 
be furnished to the buyer in New Orleans. Failing shipment within 
the specified time, none of the above mentioned obstacles having 
been encountered, it then becomes a question of delivery, and the 
local seller of cotton to arrive obligates himself to deliver the quan- 
tity and quality of cotton sold at ship's side in New Orleans within 
two (2) weeks of the time at which it should have been shipped. 
In such case the buyer shall not be compelled to pay the country 
invoice, but shall pay for the cotton on satisfactory delivery if made 
within the two weeks specified. 



m^m i f 



No. 4. 

AMENDMENT TO RULE 5 OF THE TO-ARRIVE RULES 
OF THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors June 2nd, 1920; Posted 
June 2nd, 1920; effective June 12th, 1920.) 

Expunge in the tenth line, after the word "sold," the words 
"at ship's side" and substitute therefor the words "on the spot." 

The rule as amended will read as follows: 

Unless any special time is agreed upon between the buyer and 
seller, all cotton sold "to-arrive" shall be shipped from the interior 
point at which it is purchased within ten (10) days from the date 
of contract, weather permitting, and barring obstacles over which 
the interior shipper has no control, due proof of which shall be 
furnished to the buyer in New Orleans. Failing shipment within 
the specified time, none of the above mentioned obstacles having 
been encountered, it then becomes a question of delivery, and the 
local seller of cotton to arrive obligates himself to deliver the 
quantity and quality of cotton sold on the spot in New Orleans 
within two (2) weeks of the time at which it should have been 
shipped. In such case the buyer shall not be compelled to pay the 
country invoice, but shall pay for the cotton on satisfactory de- 
livery if made within the two weeks specified. 



Xo. 9. 

AMENDMENT TO RULE 7 OF THE RULES GOVERN- 
ING COTTON TO ARRIVE, OF THE NEW 
ORLEANS COTTON EXCHANGE. 



(Adopted by the Board of Directors August 5th, 1920; posted 
August 6th, 1920; effective August 16th, 1920). 



Expunge Eule 7 of the Eules Governing Cotton to arrive and 
substitute therefor the following: 

Eule 7. All drafts and invoices for cotton shall be accom- 
panied by the original bill of lading properly endorsed with car 
numbers inserted; provided, that where car numbers are not in- 
serted the buyer shall not be required to pay for the cotton until 
it arrives in 'New Orleans. Not more than four bills of lading to 
one hundred bales of cotton or this proportion may be tendered the 
buyer; should the proportion of bills of lading be more than this, 
the buyer need not pay for the cotton until the entire lot has ar- 
rived and is ready for delivery. When the lot amounts to less than 
one hundred bales the buyer's responsibility for storage charges shall 
apply, only, after four (1:) working days from receipt of arrival 
notice of completion of the entire lot. When the lot amounts to 
one hundred bales or more, the buyer's responsibility for storage 
charges shall apply, only, after four (4) working days from re- 
ceipt of arrival notice of completed marks aggregating quantities 
of one hundred bales or more. 

Where lots of one hundred bales or more are sold, the shipper 
shall not have the right of invoicing and drawing for less than one 
hundred bales, except to complete the sale. 

Where invoices for cotton to arrive have local warehouse re- 
ceipts attached instead of bills of lading the seller must assume 
storage charges for ten (10) days from date of payment of invoice 
and buyer shall receive benefit of any unexpired storage. 



51 

/ EULE 6. 

Sellers of cotton to arrive shall be responsible in every respect 
for tlie proper fulfillment of all contracts, whether the name of the 
interior shipper be stated in the contract or not. 

EuLE 7. 

All drafts or invoices for cotton shall be accompanied by the 
original bills of lading properly endorsed. Not more than four 
bills of lading to 100 bales of cotton, or this proportion, may be 
tendered the buyer ; should the proportion of bills of lading be more 
than this, the buyer need not pay for the cotton until the entire lot 
has arrived and is ready for delivery. When the lot amounts to 
less than 100 bales, the buyer's responsibility for storage charges 
shall apply, only, after four working days from receipt of arrival 
notice of completion of the entire lot. When the lot amounts to 
100 bales or more, the buyer's responsibility for storage charges shall 
apply, only, after four working days from receipt of arrival notice 
of completed marks aggregating quantities of 100 bales or more. 

Where lots of 100 bales or more are sold, the shipper shall not 
have the right of invoicing and drawing for less than 100 bales on 
the same day. 

Where invoices for cotton to arrive have local warehouse re- 
ceipts attached instead of bills of -lading, the seller must assume 
storage charges for seven (7) days from date of payment of invoice. 

EuLE 8. 

When cotton is sold for examination in New Orleans, samples 
may be demanded by the buyer within five (5) days after delivery 
of the cotton ; and when cotton is sold on guaranteed through terms, 
samples shall be forwarded by express within four (4) days after 
shipment. Failure to comply with the provisions of this Eule shall 
subject the seller to a penalty of $5 per 100 bales. 



52 

Rule 9. 

All allowances awarded in New Orleans shall be promptly paid, 
and all other undisputed claims shall be paid within fourteen (14) 
days from date of presentation. Where cotton is weighed, sampled 
or inspected in New Orleans, all claims shall be presented within 
ten (10) days after delivery is completed or after arbitration is 
settled. 

Rule 10 

All to arrive cotton sold for examination in New Orleans shall 
average in weight not less than 450 pounds per bale. In the case 
of cotton sold for forward shipment or delivery ({. e., not imme- 
diate or prompt shipment or for delivery within thirty days) the 
weight shall average not less than 480 pounds per bale and not more 
than 550 pounds per bale. Any excess or deficit in weight to be 
settled for at the market differences between the invoice price and- 
the value on date of payment. 

The present Spot Rule No. 6 shall still apply as to the min- 
imum merchantable weights of single bales. 

The maximum and minimum weights on guaranteed through 
shipments shall be subject to Liverpool or Bremen Rules, according 
to the term.s of sale. 

Rule 11. 

Claims for fraudulently packed cotton shall be made in accord- 
ance with Rule 15, governing transactions in spots, which reads as 
follows : 

"Falsely or fraudulently packed cotton shall be defined as fol- 
lows: 'Such bales as may contain any foreign substance, water- 
packed bales, or bales containing damaged cotton in the interior, 
without any indication of such damage upon the exterior of the 



53 

bale; also such bales as are plated — L e., composed of good cotton 
upon the exterior and decidedly inferior cotton in the interior of 
the bales, in such manner as not to be detected without opening the. 
same.' " 

All claims as above shall be accompanied by vouchers duly 
sworn to before legal authority, setting forth in full the grounds 
on which the claim is based. 

In all cases where cotton is restored and held in this city such 
claims shall be good against the seller for 100 days from date of 
delivery. Where cotton has been exported to a foreign or domestic 
port, the certificate and claim shall be dated vdthin 100 days from 
the date of the last day of the discharge of the vessel carrying such 
cotton to the port of destination and must be presented to the seller 
here, if from Europe, within thirty (30) days, and if from Amer- 
ican spinners within ten (10) days from date of claim. 

EULE 12. 

Barring obstacles over which the buyer has no control, due 
proof of which shall be furnished, cotton to be weighed in New Or- 
leans shall be weighed within seven (7) working days after arrival, 
failing which, after three (3) days' notice, the seller shall be re- 
leased from all responsibility. Cotton sold on Guaranteed Through 
terms, shipside New Orleans, shall be ordered for shipment within 
twenty (20) days after notice of arrival; otherwise seller shall not 
be responsible for any loss in weight. 

KULE 13. 

All invoices or drafts against cotton to arrive or cotton sold 
so as to reach here within a specified time, shall, upon presentation 
of documents not later than 2 p. m., be paid promptly, excepting 
in cases covered by Eules 3, 4, and 5. 



54 

The seller shall have the right to ask for a certified check in 
settlement of any invoice to which negotiable documents are at- 
tached before surrendering such negotiable documents; provided, 
request for certified check is made before 12 o'clock noon. 

EULE 14. 

When to arrive compressed cotton is condemned by the ship 
for deficient compressing, the buyer must identify each bale so 
condemned. 

Claims for deficiency in compressing shall be presented within 
ten (10) days after sailing of vessel. 



RULES GOVERNING COTTON SOLD 

FOR EXAMINATION IN 

NEW ORLEANS 



57 



RULES GOVERNING COTTON SOLD 

FOR EXAMINATION IN 

NEW ORLEANS. 



EULE 15 



Every contract for the sale of to arrive cotton on description 
must : 

(i) Conform to the requirements of Section 4 of the Rules 
and Eegulations made pursuant to the United States Cotton 
Futures Act. 

(2) Specify the grade, type, sample, or description of the 
cotton involved in the contract, the price per pound at which such 
cotton is contracted to be bought or sold, the date of the purchase 
or sale, and the time when shipment or delivery of such cotton is 
to be made. 

(3) Provide that cotton of or within the grade or of the type, 
or according to the sample or description, specified in the contract 
shall be delivered thereunder, and that no cotton which does not 
conform to the type, sample, or description, or which is not of or 
within the grade specified in the contract, shall be tendered or 
delivered thereunder. 

(4) Provide that the delivery of cotton under the contract 
shall not be effected by means of "set-oif" or "ring'' settlement, 
but only by the actual transfer of the specified cotton mentioned 
in the contract. 

The subdivisions (1), (3) and (4) shall be deemed fully in- 
corporated into every contract made under the Rules and Eegula- 
tions of this Exchange by the recital therein that it is subject to 



58 

the United States Cotton Futures Act, Section No. 10, and is gov- 
•erned by the Eules of the New Orleans Cotton Exchange. 

All contracts made for the sale of cotton to arrive on grade 
description (i. e., not on type or sample) shall describe the grade 
sold and to be delivered in the following form : 

Bales of Cotton. 

65 per cent (or more, at seller's option) ^ 

35 per cent (or less, at seller's option) ^ 

Price : cents per pound for ^ 

deliveries and for * deliveries as much less as 

market price of * is below the market price of 

^ at time of delivery. 



1 Here insert grade. 

2 Here insert the half grade lower. 

3 Here insert grade of which 65% or more to be delivered. 
* Here insert grade of which 35% or less to be delivered. 



KULE 16. 

When cotton is bought on type, the seller, if requested, shall 
seal the type in the presence of the buyer. 

EULE 17. 

When cotton to arrive is sold on samples, or types, it shall be 
optional with the buyer whether he rejects or accepts with an 
allowance any bales tendered which were not represented in the 
original samples, or types. 

This Eule thus applies only to contracts relating to Spot 
Cotton, and shall not apply to contracts made at, on, or in the 
Exchange for future delivery not properly considered as transac- 
tions in Spot Cotton. 



59 

Rule 18. 

If the rejections under the above Eule out of any lot should 
amount to five (5) per cent or more, they shall be replaced im- 
mediately by the local seller with cotton ready for delivery ; or at 
seller's option settlement shall be made with the buyer at the differ- 
ence in the market value between the date of sale and the date of 
rejection. 

Rule 19. 

Cotton to arrive sold for examination in New Orleans may be 
received by the buyer through the New Orleans Cotton Exchange, 
he paying the extra charges. 

Rule 20. 

Cotton rejected (unless otherwise provided for in these Rules) 
shall be invoiced at contract price back to the local seller, who shall 
at once reimbures the buyer plus all valid charges incurred. 

Rule 21. 

Section 1. In case of dispute on contracts to which Rule 17 
applies as to grade or staple, after examination of re-drawn samples, 
due allowance having been made on samples from compressed bales, 
the buyer shall make a demand for amount of allowance claimed, 
and the seller in turn shall state what allowance he is willing to 
make. Failing to agree, either party may demand an arbitration, 
in which case each party shall call in as arbitrator a member of the 
Exchange, who is not interested in the transaction, nor an employee 
of either party. 

Sec. 2. The fee for such arbitration shall be five (5) cents per 
bale to each arbitrator, and, in case the arbitrators call in a third 
arbitrator, his fee, which shall be 3% cents per bale, shall be paid 



60 

in equal shares by the two arbitrators; provided, that either party 
to the arbitration shall have a right to demand that two (2) arbi- 
trators shall be drawn by lot by the Superintendent of the Ex- 
change, from the panel of the Board of Classers, in which case the 
same amount of fees shall be charged and paid into the Cotton 
Exchange Inspection Fund. In the event of demand for arbitra- 
tion through the Board of Classers, all samples and communications 
must be sent to the Secretary of the Exchange, and the packages 
of samples must be numbered by the Secretary before being sent to 
the Board of Classers. Names of the parties arbitrating are not to 
be divulged. Either party may appeal from the decision of the 
Board of Classers to the Appeal Committee on Classification, three 
members of which to be drawn from the panel to act in such case. 
The additional fees for appeal shall be sixteen (16) cents per bale, 
to be divided equally among the three members acting and the 
Exchange. The fees for any appeal shall not aggregate less than 
twelve ($12) dollars. The costs for arbitrations and appeals shall 
be paid by the party whose claim differs most from the final award. 

Sec. 3. Contracts made at, on, or in the Exchange for future 
delivery which cannot properly be considered as sales of spot cotton, 
are within the United States Cotton Futures Act, and every such 
contract must provide that cotton of, or within, the grade, or of the 
type, or according to the sample or description specified in the con- 
tract, shall be delivered thereunder, and that no cotton which does 
not conform to the type, sample, or description, or which is not of, 
or within, the grade specified in the contract, shall be tendered or 
delivered thereunder. The purchaser is at liberty, if he sees fit, to 
voluntarily relinquish any of the rights secured to him by such con- 
tract, and to accept from the seller cotton tendered by the latter 
upon such basis as may be voluntarily agreed to between himself 
and the seller ; or he may at the time of settlement voluntarily agree 
with the seller to accept a tender upon such basis as may be fixed 



■ #ii.i»B«ww!a»ft*-iWW»— »o^ 



No. 2. 

AMENDMENT TO RULE 22 OF THE TO-ARRIVE RULES 
OF THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors June 2iid, 1920; Posted 
June 2nd, 1920; effective June 12th, 1920.) 

Add at the end of the rule the following: 

"Provided that in case of high density bales, nine (9) ties 
shall be allowed. An allowance of one (1) pound per tie shall be 
made for all ties in excess of nine (9) ties; but there shall be no 
allowance when there are less than nine (9) ties." 

The rule as amended will then read: 

Compressed cotton, re-weighed in New Orleans, shall be set- 
tled for at actual weights, allowing seven (7) bands of the usual 
weight of one and three-tenths (1 3/10) pounds per band to the 
bale, and final settlement shall be on these weights, irrespective 
of country invoices, the differences to be paid to or collected from 
the seller by the buyer. Allowance shall be made by seller to 
buyer for any ties in excess of seven (7) carried by any compressed 
bale of cotton delivered in New Orleans without reference to any 
bales that carry less than seven (7) ties, and delivered in the same 
lot. Samples and loose shall be paid for by the buyer. Uncom- 
pressed bales to be also settled for at the actual weight, allowing 
six (6) ties to each bale. Provided that in case of high density 
bales, nine (9) ties shall be allowed. An allowance of one (1) 
pound per tie shall be made for all ties in excess of nine (9) 
ties ; but there shall he no allowance when there are less than 
nine (9) ties. 



\ 



J 



61 

by two members of the Exchange called in by buyer and seller re- 
spectively, as arbitrators (who shall not be interested in the trans- 
action, nor an employee of either party). But no contract, agree- 
ment or rule, shall directly or indirectly compel or require the buyer 
to accept upon any basis, cotton which does not conform to the type, 
sample or description, or which is not of, or within, the grade 
specified in the contract, if at the time of tender he does not desire 
to accept it. In the event that the buyer voluntarily accepts cotton 
so tendered, upon the basis of allowance fixed by arbitrators, the 
fees for, and the manner of, the arbitration and appeals, shall be 
as provided in Section 2 of this Eule. 

EuLE 22. 

Compressed cotton, re-weighed in New Orleans, shall be 
settled for at actual weights, allowing seven (7) bands of the usual 
weight of one and three-tenths l/4o) pounds per band to the bale. 
and final settlement shall be on these weights, irrespective of coun- 
try invoices, the differences to be paid to or collected from the 
seller by the buyer. Allowance shall be made by seller to buyer 
for any ties in excess of seven (7) carried by any compressed bale 
of cotton delivered in New Orleans without reference to any bales 
that carry less than seven (7) ties, and delivered in the same lot. 
Samples and loose shall be paid for by the buyer. Uncompressed 
bales to be also settled for at the actual weight, allowing six (6) 
ties to each bale. 

Eule 23. 

Sellers shall be relieved of any further responsibilities aftei 
cotton is re-weighed and re-sampled in New Orleans, except in casea 
of fraudulently packed cotton, which shall be governed by Eule 11 



62 



KuLE 24. 

When cotton is re-sampled and re-weighed here without the 
knowledge of the seller or his representative, no claim shall be 
allowed. 

EuLE 25. 

Cotton sold to arrive for examination in New Orleans shall be 
weighed in accordance with Eule 13 of the Spot Eules. The tare 
allowance, if any, to be made according to provisions of Eule 8 of 
the Spot Eules. 



RULES GOVERNING COTTON SOLD ON 

"GUARANTEED THROUGH" 

TERMS 



65 



RULES GOVERNING COTTON SOLD ON 

^"^GUARANTEED THROUGH'^ 

TERMS. 



Rule 26. 



The seller of cotton "to arrive" shall guarantee the gross land- 
ing weight to be within one per cent of the gross invoice weight. 
Any excess of bands over nine hundred (900) pounds for each one 
hundred (100) bales of cotton to be deducted from landing weight; 
allowance to be made for missing bands and ship pickings. 

Rule 27. 

When the loss in weight on cotton sold on guaranteed through 
terms amounts to more than two (2%) per cent of the invoice 
weight, the seller shall refund to the buyer the ocean freight and 
insurance on the loss in weight above the usual one (1%) per cent 
franchise. 

Rule 28. 

Guaranteed through cotton shall not be re- weighed or re- 
sampled in New Orleans, unless the buyer or seller of such cotton 
shall have good cause to suspect serious irregularities. After notify- 
ing the other party interested, the cotton shall be re-weighed or re- 
sampled, or both, in New Orleans, by a weigher or sampler, or both, 
appointed by the Exchange. If the cotton turns out to have been 
fraudulently shipped, the seller shall pay all expenses, including 
weighing, sampling, inspecting, etc., and settlement shall be made 



66 



as in the case of cotton sold for examination here; if it turns out 
otherwise, it shall take the original course intended, and all expenses 
shall be paid by the party demanding the examination. 

The buyer shall have the right to claim settlement for any 
difference on samples drawn as above, making due allowance for 
samples drawn from compressed bales. 

Rule 29. 

Cotton sold to arrive, guaranteed through, on samples, shall 
be guaranteed by the seller to turn out at port of discharge equal 
in all respects to the selling samples, with such allowance as obtains 
on samples from compressed bales at the port of discharge. 

Rule 30. 

Cotton sold landed at mill points in the United States shall be 
subject to the rules obtaining in the section of the destination of 
the cotton, so far as the same are not inconsistent with the require- 
ments of the Cotton Futures Act, to the extent that the provisions 
of that Act may be applicable to the contracts upon which the cotton 
is sold. 

Rule 31. 

All cotton bought on one contract, if shipped by the exporter 
under one contract, shall be subject to one weight settlement. If 
shipped by the exporter under several contracts, weight settlements 
shall be made on each contract. 

Rule 32. 

Claims for loss in w^eight from foreign ports must be sub- 
stantiated by the proper certificates from seller's controllers, or as 
may be mutually agreed upon. The seller shall pay controller's fee. 



67 

Rule 33. 

All claims for loss in weight shall be forwarded from Europe 
within thirty (30) days, and for deficiency in grade within forty- 
five (45) days after discharge of vessel at point of destination, and 
must be presented to seller within twenty (20) days thereafter; 
otherwise, such claim shall not be binding on the seller. 

Rule 34. 

In claims on to arrive guaranteed through cotton for grade, 
six (6%) per cent shall be deducted from the gross invoice weight 
when the cotton has been shipped on C. F. and 6 per cent, or 
C. I. F. and 6 per cent terms, but not otherwise. 

Rule 35. 

In case of arbitration allowance on guaranteed through cotton, 
the loss in weight, if any, to be deducted from the invoice weight 
in making claim. 

Rule 36. 

When arbitration is held abroad on guaranteed through cotton, 
the fees shall be paid as is customary in the market in which the 
arbitration is held. 

Rule 37. 

Any claim relating to weight, tare or dampness, on guaranteed 
through cotton, not covered by any of the above provisions, must be 
established by the respective controllers at the port of discharge- 



FUTURE BUSINESS 



71 



NEW ORLEANS COTTON EXCHANGE 

TRANSACTION OF THE FUTURE BUSINESS 

RULES RELATING TO 

CONTRACTS AND DELIVERIES 



FORM OF CONTRACT. 

Rule 1. Section 1. No contract for the future delivery of 
cotton shall be noticed in any public report or printed circular, or 
in any manner recognized, acknowledged or enforced by the Ex- 
change or any committee or oflBcer thereof, unless both parties thereto 
shall be full members of the New Orleans Cotton Exchange ; it 
being provided, however, that where contracts are issued by firms 
composed of two or more partners, at least two of said partners shall 
be full members of said Exchange. 

Section 2. The following form of contract, designated as a 
Section 5 Contract, shall apply to all contracts entered into on and 
after March 6th, 1919 : 

SECTION FIVE CONTRACT. 

New Orleans^ 19 . . . . 

In consideration of one dollar in hand paid, receipt of which 

is hereby acknowledged, of the 

City of New Orleans, State of Louisiana, have this day sold to (or 



72 

bought from) of the City of 

New Orleans, State of Louisiana, 50,000 pounds, in about 100 
square bales of cotton, growth of the United States, deliverable 
from approved storage places for cotton in the Port of New Orleans, 

between the first and last days of next, inclusive, 

excepting holidays as provided in Rule 38 of the Rules of the New 
Orleans Cotton Exchange for the transaction of the Future Con- 
tract business. 

The delivery within such time to be at seller's option, in not 
more than two approved storage places, upon five business days' 
notice to the buyer, as provided by the Rules of the New Orleans 
Cotton Exchange. 

The cotton to be dealt with herein or delivered hereunder shall 
be of, or within, the grades for which standards are established by 
the Secretary of Agriculture, except cotton prohibited from being 
delivered on a contract by the fifth subdivision of Section 5 of the 
United States Cotton Futures Act, as amended March 4th, 1919, 
and no other grade or grades (subject to the United States Cotton 
Futures Act, Section 5, and inspection and classification as pro- 
vided in amendment to the United States Cotton Futures Act of 

March 4th, 1919) at the price of cents per pound for 

Middling. 

In case cotton of grade other than the basis grade should be 
delivered or tendered in settlement of this contract, the differences 
above or below the contract price which the receiver shall pay for 
such grades, other than the basis grade, shall be the actual commer- 
cial differences determined as provided in Section 6 of the United 
States Cotton Futures Act, and the Amendment of March 4th, 
1919. 

Either party shall have the right to call for a margin as the 
variations of the market for like deliveries may warrant and which 
margin shall be kept good. 

This contract is made in view of, and in all respects subject 



73 

to, the United States Cotton Futures Act, Section 5, as amended 
March 4th, 1919, and to the By-Laws, Eules and conditions, not 
in conflict therewith, established by the Xew Orleans Cotton Ex- 
change. 

(Signed) 

Section 3. Verbal contracts (which shall always be presumed 
to have been made in the form herein prescribed) shall have the 
same standing, force and effect as written ones, if notice in writing 
(conforming to the requirements of the United States Cotton 
Futures Act, as amended March 4th, 1919) of such contract shall 
have been given by one of the parties thereto to the other party 
during the day on which such contract was made or the next busi- 
ness day thereafter. 

Section 4. For the purposes of the form of contract prescribed 
in Section 2 of Eule 1, the term "about 100 square bales of cotton'^ 
shall be deemed to mean '^'not more than 110 square bales of cotton/' 

Eule 1-A, To avoid abnormal fluctuations of price caused by 
conditions created by the European War^ trades for future delivery 
in any month shall, during any one day, not be made at prices 
varjdng more than two cents per pound above or below the closing 
bid price of such month of the preceding business session of the 
Exchange. Nor shall trades in any month be made in any one day 
at an advance of more than two cents per pound above the lowest 
previous price of such month on that date, or at a decline of more 
than two cents per pound below the highest previous price of such 
month on that day. 

For the purpose of this Eule, the closing bid price shall be not 
less than the minimum price prescribed herein. This Eule shall be 
in effect during the period of the war and for such period after the 
declaration of peace as the Board of Directors may hereafter de- 
termine. 

At the discretion of the Board of Directors, the limits of 
trading herein provided for may be changed. 



74 

FOEM OF OEDER TO BUY OR SELL CONTEACTS. 

Rule 2. Section 1. Every order, written or verbal, given to 
a member of the New Orleans Cotton Exchange to buy or sell a 
contract for the future delivery of cotton, as agent or broker of the 
party giving the order, shall be agreed to be subject to the By-Laws 
and Rules of the New Orleans Cotton Exchange and subject to the 
United States Cotton Futures Act. 

Section 2. It is the intent of the Rules of this Exchange that 
every contract for the future delivery of cotton made pursuant to 
these Rules shall be deemed to contain therein each and every pro- 
vision and condition mentioned and described in Section 5 of the 
United States Cotton Futures Act, and each and every such, pro- 
vision or condition, whether expressly and in terms by said Rules 
incorporated in each such contract or not, is hereby made a part of 
each such contract as fully and effectually as if therein set out at 
length ; and any provision of said Rules which may in any way con- 
flict with any provision or condition mentioned or described in said 
Section 5 of said Act is hereby and to the extent of such conflict 
repealed and declared to be of no effect. 

GENERAL PROVISIONS COVERING INSPECTION, 
CLASSIFICATION AND CERTIFICATION. 

Rule 3. All tenders of cotton and settlements thereof under 
a Section 5 contract shall be in accordance with the classification 
thereof made under the regulations of the United States Secretary 
of Agriculture by such officer or officers of the Government as shall 
be designated for the purpose by said Secretary of Agriculture, and 
no cotton shall be tendered upon a contract for future delivery 
(designated as a Section 5 Contract) unless on or prior to the date 
fixed for delivery under such contract and in advance of settlement 
of the contract the person making the tender shall furnish to the 
person receiving the same a valid outstanding class certificate of 



75 

the Board of Cotton Examiners of the United States Agricultural 
Department showing such cotton to be tenderable under a Section 
5 Contract, or a written notice of grade by the tenderer, validated by 
the Chairman of the Board of Cotton Examiners as provided in 
Eegulation 8 of the Kegulations of the Secretary of Agriculture, 
issued May 22nd, 1919, under Section 5 of the United States 
Cotton Futures Act as amended March 4th, 1919, said written 
notice to be followed by Cotton Class Certificate or Certificates of 
the Board of Cotton Examiners as provided in Section 5 of said 
Eegulation 8. 

The Inspection, Weighing and Sampling and the preparation 
of samples of cotton for classification by the Board of Cotton Ex- 
aminers of the Agricultural Department shall be under the super- 
vision of the Inspection Bureau of this Exchange, subject to the 
regulations of the Secretary of Agriculture and the said Inspection 
Bureau shall have the supervision or control of any cotton classified 
pursuant to such regulations. 

LICENSING PEESSMEN, EMPLOYEES AND OTHEES. 

EuLE 4. All parties engaged in handling cotton for members 
of this Exchange, under these Eules, including Warehousemen, 
Pressmen, Assistant Inspectors, Weighers and Samplers, must be 
licensed or approved by the Board of Directors as follows : 

Every application must be properly endorsed by two members 
of the New Orleans Cotton Exchange, and addressed to the Com- 
mittee on Supervision and Deliveries (except in the case of As- 
sistant Inspectors, who shall be appointed, as provided elsewhere 
in these Eules). That Committee, after examination into the 
character and qualifications of the applicant or appointee, shall 
forward the application or appointment, with its approval or dis- 
approval, to the Secretary of the Exchange, and, in the latter case, 
shall specify the reasons for its action. If favorably considered by 
the Board, it shall be returned to the Committee with instructions 



76 

to issue the license applied for, which license must be signed by 
the President of the Exchange and countersigned by the Secretary. 
If not approved by the Board of Directors, it shall be returned to 
the Committee with memorandum of disapproval endorsed thereon. 
Storage places for cotton within the limits of the Port of New 
Orleans must be recommended by the Committee on Supervision 
and Deliveries and approved by the Board of Directors. 

Any license or approval issued under the provisions of this Kule 
may be cancelled at any time, either by the Board of Directors or 
the party holding the license or approval (except as to contracts 
existing at date of notice), by a notice in writing, stating the in- 
tention to cancel, given by one party to the other; but a notice to 
cancel a Warehouseman's or Pressman's approval must be served 
at least thirty days before the date therein specified as the date of 
cancellation. 

COMMITTEES, ETC., TO CAERY OUT HANDLING RULES 
AND REGULATIONS. 

Rule 5. The Board of Directors shall annually, at the first 
meeting after their election, appoint the following: 

A Committee on Supervision and Deliveries. 

An Inspector-in-Chief. 

A Board of Classers or Inspection Bureau for the supervision 
of the examination, inspection and sampling of cotton and the 
classification of such cotton (Spot, "to arrive," etc.) as may be sub- 
mitted to them for that purpose. Not less than three members of 
which Board shall serve as a Committee on Spot Quotations as pro- 
vided in Article VII of the By-Laws. 

An Appeal Committee on Classification. 

COMMITTEE ON SUPERVISION AND DELIVERIES. 

Rule 6. The Committee on Supervision and Deliveries shall 
consist of the President, ex-officio; at least one member of the 



'^Jitfsi 




AMENDMENT TO RULE 4 OF THE FUTURE RULES 

OF THE NEW ORLEANS COTTON EXCHANGE 

1920 EDITION. 

(Adopted by the Board of Directors April 7, 1920. Posted 
April 8, 1920; effective April 19, 1920.) 

Amend Eule 4 of the Future Eules (Edition of 1920) by in- 
sertion of the following after the third paragraph: 

Presses or storage places shall be required to have all cotton that 
may be stored in the open and subject to' weather conditions, 
placed on skids and covered with tarpaulins. 

The physical conditions of presses and storage places for cotton 
shall at all times be subject to the inspection of the Inspection 
Bureau of the Exchange and such presses or storage places shall 
be required to keep all open courts in order, properly shelled and 
well drained. 



77 

Board of Directors, who shall be Chairman, and four members in- 
terested in the trade. Four members of said Committee shall con- 
stitute a quorum. 

This Committee shall have general supervision and direction 
of the Inspection Bureau, subject to the Board of Directors, and 
shall decide questions of detail that may arise in the inspection of 
cotton. It shall serve as a Conference Committee with the Gov- 
ernment officials in reference to the United States Cotton Futures 
Act and shall co-operate therewith in the application of the Govern- 
ment regulations for certification of contract deliveries. This 
Committee shall also have charge of all matters appertaining to 
the Spot Sample Department and to Supervision and Levee In- 
spection as provided in Eule 3 of the Press Supervision Eules. 

It shall be the duty of this Committee to examine into, and 
pass upon, all applications for licenses or approvals of Pressmen 
or Warehousemen, Assistant Inspectors, Weighers and Samplers 
(conferring, when necessary, in reference thereto with the United 
States Local Board of Cotton Examiners or the Chief of the Bureau 
of Markets), refer the same to the Board of Directors, with its 
recommendations, for final action; and to adopt such rules and 
regulations for the guidance of licensed or approved parties as it 
may deem necessary, and to report the same to the Board of Di- 
rectors. Upon complaint of misconduct on the part of any person 
or persons licensed or approved by the Exchange (which complaint 
must be reduced to writing and verified by the party making it), 
it shall be the duty of this Committee to summon the accused and 
accuser before it, to sit as a Court of Inquiry in such case or cases, 
to take testimony under oath, and to submit the same, together with 
its recommendations, to the Board of Directors for its approval. 

The Committee may, in its discretion, suspend the license or 
approval of any party, pending the final action of the Board. 

It shall be the duty of the Chairman of the Committee ov 
Supervision and Deliveries, upon issuing a license to each Weigher 



78 

and Assistant Inspector, to have administered to such Weigher or 
Assistant Inspector the following oath: "I do solemnly swear (or 
affirm, as the case may be) that I will execute the duties of Weigher 
(or Assistant Inspector) of Cotton, under the Rules of the New 
Orleans Cotton Exchange, with strict impartiality, and according 
to the best of my ability." 

IXSPECTOR-IN-CHIEF; ASSISTANT INSPECTORS; 
SAMPLERS. 

Rule 7. Section 1. At the first meeting held during the 
month of December, or at any meeting, in case a vacancy in the 
position should occur, the Board of Directors shall appoint an In- 
spector-in-Chief of Cotton (who may, if required, be the Chief 
Supervisor of the Exchange). The Board of Directors shall ap- 
point such Assistant Inspectors as may be necessary, who may also, 
if desired, serve as Assistant Supervisors. The Inspector-in-Chief 
shall be Chairman of the Board of Classers or Inspection Bureau. 

Section .2. It shall be the duty of the Inspector-in-Chief, 
when called upon to make an inspection of cotton for classification 
by the Government Board of Cotton Examiners, or for spot, "to 
arrive" or other purposes, to detail an Assistant Inspector and a 
duly licensed Sampler and Weigher, to whom he shall furnish in- 
structions as to sampling and weighing, and over whom he shall 
have supervision and direction. He shall keep a record of all such 
cotton as may be inspected, of the marks by which it is submitted, 
re-marks, classification, place and date of inspection, inspection 
numbers, names of parties requesting inspection, names of Samplers 
and Weighers, numbers, weights and any other necessary details, 
and, upon application by the owner or parties properly interested 
in the cotton, furnish to them such reports of the same as they may 
require. He shall have charge of the Spot Sample Department, 
subject to the Committee on Supervision and Deliveries. He shall 



79 

also keep a record of the expenditures incurred in the management 
of his office as Inspector-in-Chief. 

INSPECTION BUREAU. 

EuLE 8. Section 1. The Board of Classers (Inspection 
Bureau) shall consist of from three to seven recognized experts, 
(including the Inspector-in-Chief as Chairman thereof), who shall 
be paid salaries, to be fixed by the Board of Directors, whose services 
shall be entirely at the disposition of the Exchange during each 
business day, and who shall not be engaged in any occupation other 
than classing cotton for the Exchange and the performance of such 
other duties as may be required of them under the By-Laws or by 
direction of the Board of Directors; excepting that the Inspector- 
in-Chief may, in addition to classing cotton, also perform such 
duties of inspection and supervision as may be required of him^ 
but shall have no occupation other than that strictly called for by 
his employment by the Exchange. 

Two members of this Board shall constitute a quorum, to whom 
shall be submitted samples designated by the Inspector-in-Chief 
for classification. 

In the event of these two being unable to agree, they shall take 
a third from the remainder of the Board, and a majority of these 
three shall decide the classification. 

Section 2. Any decisions rendered by the Board of Classers 
(except those relating to rejections of unsound or unmerchantable 
cotton) may be appealed from by either party in interest to the 
Appeal Committee on Classification. 

Section 3. Unless otherwise designated, decisions of the 
Board of Classers shall be guided by the "Official Cotton Standards 
of the United States/' which are made the official standards of the 
Exchange, and it is made their duty to refer to said standards in 
each and every case before them relating to the grading of such 
samples of cotton as may be submitted to them. 



80 

Section -i. The Board of Directors may, at its discretion, ap- 
point such additional salaried Classers for temporary service as 
exigencies may require. All appointees to these positions shall be 
subject to removal at the pleasure of the Board of Directors. 

In the event of the absence, by reason of illness or other cause, 
of any member of the Board of Classers, the Board of Directors 
shall be empowered to fill the vacancy, either permanently or for 
the time. 

CLEEK, BOAED OF CLASSEES. 

EuLE 9. The Committee on Supervision and Deliveries may 
appoint, subject to the approval of the Board of Directors, a Clerk 
of the Board of Classers, who shall be paid such salary as may be 
fixed by the Board of Directors. It shall be the duty of this Clerk 
to take charge of the Classification Eoom, and of the types and 
samples therein contained, to receipt for all samples sent to the 
Board, to see that the seals of all samples submitted to the Board 
are broken only by or in the presence of said Board, to make out the 
reports of decisions by the Board of Classers or Appeal Committee 
on Classification, to send the same to the respective parties in in- 
terest, and to keep a record of all transactions of both the Board of 
Classers and the Appeal Committee and of all business done in the 
Committee Eoom. 

APPEAL COMMITTEE ON CLASSIFICATION. 

EuLE 10. Section 1. The Board of Directors shall appoint 
annually, in the month of December, an Appeal Committee on 
Classification, to consist of seven members of the Exchange, who 
shall be recognized experts in the classification of cotton. 

Section 2. The duties of such Appeal Committee on Classi- 
fication shall be to decide questions relating to grade and staple of 
cotton not provided for in the United States Cotton Futures Act 



81 

or regulations thereof as may be referred to them on appeal from 
the Board of Classers. , .: . 

The Appeal Committee shall be furnished by the Superinten- 
dent of the Exchange with a copy of the award of tie Board of 
Classers (or Inspection Bureau) from which appeal is made. 

Section 3. Three members of said Committee, to be chosen 
by lot by the Superintendent, shall serve on each appeal, and the 
award of a majority shall be final and binding. 

Section 4. No member of said Committee shall serve as an 
arbitrator on any appeal wherein he is directly or indirectly in- 
terested. 

Section 5. The samples of cotton sent up for appeal shall be 
classed between the hours of 10 a. m. and 3 p. m., but must be 
exposed for twenty-four (24) hours before being classed or passed 
upon. 

Exposure of samples as above provided may be waived by re- 
quest of the party appealing, but in that event the appeal fee must 
be paid in full, regardless of outturn compared with decision of 
arbitrators, provided also that the words, "Exposure waived,'' must 
be written across the Appeal Committee's award. 

Examination of samples and awards may be made on legal or 
other holidays. 

Section 6. The fees for each appeal shall be sixteen (16) 
cents per bale, of which four cents per bale to be paid to each of 
the three members of the Appeal Committee, and four cents to the 
Exchange ; and such fees shall be paid by the party appealing, un- 
less more than fifty per cent of his claim is sustained; said fifty 
per cent to be calculated by number of bales or by value in hun- 
dredths of a cent in accordance with the manner in which claims 
are made. Should claimants not specify their demands, the fifty 
per cent shall be calculated by number of bales on which gains or 



*."''' f '■ 



82 

losses have been made. Fees for any appeal on grade or staple shall 
not aggregate less than twelve (12) dollars. 

Section 7. The decision of the Appeal Committee shall be 
made as soon as practicable in writing, and filed with the Super- 
intendent of the Exchange, who shall serve a copy thereof upon 
each party interested and collect the fees. 

Section 8. Unless otherwise called for in an appeal, the d 
cisions of the Appeal Committee on Classification shall be guidt 
by the Official Cotton Standard of the United States, which are 
official standards of the Exchange, and it is made the duty of the 
members to refer to said standards in each and every matter be- 
fore them which relates to the grading of cotton. 

Section 9. If any member of this Committee drawn by lot to 
serve in any case is disqualified or unable to attend, the Superin- 
tendent shall draw another in his stead. 

WEIGHT EETUENS. 

Rule 11. Cotton delivered on contract must, prior to delivery, 
be weighed through the Exchange, after sampling by a duly licensed 
Weigher, under the supervision of an Assistant Inspector or 
licensed Weigher duly appointed by the Exchange for the purpose, 
who shall act as a reweigher, taking the weights from the actual 
weighing, as shown by the beam (and not from the Weigher^s book 
or verbal report), according to the original marks, re-marks, lot 
number and tag number. 

Eeturns of said weights, in accordance with the marks and 
numbers, shall be made in duplicate, or triplicate, if desired by the 
owner, one of which shall be sent by the Weigher to the office of 
the Inspector-in-Chief for record and a duplicate sent to the owner 
of the cotton. The copy of said weights sent to the office of the 
Inspector-in-Chief shall be compared with the returns of the re- 
weigher, bale by bale, and in event of any discrepancies, the cotton 



No. 16. 

AMENDMENT TO RULE 11 OF THE FUTURE RULES 
OF THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors July 6th, 1921; Posted July 
7th, 1921; Effective July 18th, 1921). 

Amend Eule 11 of the Future Kules, page 82, (1920 edition) 
by substituting the following for the first paragraph: 

Weight Returns. 



Eule 11. Cotton delivered on contract must prior to delivery, 
be weighed through the Exchange after sampling by a duly licensed 
weigher under supervision of a licensed re-weigher. 

A Board of Weighers of Contract cotton to consist of eighi 
members shall be appointed by the Committee on Supervision and 
Deliveries subject to approval of the Board of Directors, and the 
members of said Board shall be duly licensed by the Exchange. 
No other parties shall be eligible to weigh contract cotton. In 
case of special emergency the committee may appoint additional 
I weighers for service in the case at hand. 

\ When cotton is tendered to the Exchange for weighing, two 

I members of said Board of Weighers shall be drawn by lot by the 

V Inspector in Chief or the Associate Inspector in Chief to weigh 

such cotton, the first drawn to be the weigher and the other the 
I re- weigher; provided that no party who is in the employ of the 

9 owner, deliverer or receiver of such cotton, or is directly or in- 

I directly interested shall be eligible for service thereon. 

I The re-weigher's weights must be taken from the actual weigh- 

)_ ing as shown by the beam (and not from weigher's book or verbal 

i report) according to original marks, re-marks, lot number and 

tag number. If any allowances in weight are made, the amount 
thereof and the reason therefor shall be noted next to each indi- 
vidual bale on the weight returns. 

It shall be the duty of the parties thus drawn to give preference 
to the Exchange work and it shall be equally their dutv ta iimriedi- 



83 

shall be weighed again. Charge for weighing shall be determined 
by the Board of Directors, one-half of which charge shall be paid 
by the receiver of the cotton to the party making the delivery. The 
deliverer shall furnish the receiver with a copy of the detailed 
weight returns. 

mSPECTION, SAMPLING— DUTIES OF INSPECTION 

BUREAU. 

Rule 12. Section 1. The inspection and sampling of 
cotton for delivery on contract shall be in accordance with Regula- 
tion 5 of the "Regulations of the Secretary of Agriculture/' under 
Section 5 of the United States Cotton Futures Act, as amended 
March 4th, 1919, issued May 22nd, 1919, copy of which and of the 
United States Cotton Futures Act, as amended March 4th, 1919, 
are attached hereto in appendix to these Rules. 

It is made the duty of the Exchange Inspection Bureau to 
co-operate with the Bureau of Markets of the United States De- 
partment of Agriculture and the Board of Cotton Examiners of 
said Bureau, in the inspection, sampling and preparation of cotton 
samples for classification by said Board of Cotton Examiners, and 
to perform such other functions as may be requested of it in 
furtherance of the United States Cotton Futures Act and the regu- 
lations in pursuance thereof. 

Section 2. It shall be the duty of the Assistant Inspector, 
together with the Sampler, to carefully examine and inspect each 
bale, to see that the same is sound and merchantable, and that no 
other bale is permitted to be put in any class mark or lot that is 
to be sent to the Board of Cotton Examiners. The samples of such 
bales as may be rejected by the Assistant Inspector and Sampler 
shall be carefully preserved, with all defects, and, at the option of 
the owner of the cotton, may be submitted to the Board of Cotton 
Examiners, to determine whether the rejection made is proper. It 



AMENDMENT TO RULE 11 OF THE FUTURE RULES 
OP THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors July 6th, 1921; Posted July 

7th, 1931; Effective July 18th, 1931). 

Amend Rule 11 of the Future Kules, page 82, {1930 edition) 

by substituting the following for the first paragraph: 

Weight Returns. 

Rule 11. Cotton delivered ou contract must prior to delivery, 
he weighed through the Exchange after sampling by a duly licensed 
weigher under supervision of a licensed re-weigher. 

A Board of Weighers of Contract cotton to consist of eigh\ 
members shall be appointed by the Committee on Supervision and 
Deliveries subject to approval of the Board of Directors, and the 
members of said Board shall be duly licensed by the Exchange. 
Xo other parties shall be eligible to weigli contract cotton. In 
case of special emergency the committee may appoint additional 
weighers for service in the ease at hand. 

When cotton is tendered to ttiL- Exchange for weighing, two 
inenibers of said Board of Weigherb shall l)e drawn by lot by the 
Inspector in Chief or the Associate Inspector in Chief to weigh 
Mwh cotton, the first drawn to lie the weigher and the other the 
re-weigher; provided that no party who is in the employ of the 
owner, deliverer or receiver of such cutton, or is directly or in- 
directly interested shall be eligible for service thereon. 

The re-weigher's weights must be taken from the actual weigh- 
ing as shown by the beam (and not from weigher's book or verbal 
report) according to original marks, re-marks, lot number and 
tag number. If any allowances in weight are made, the amount 
thereof and the reason therefor shall be noted next to each indi- 
vidual bale on the weight returns. 

It shall 1)0 the duty of the parties thus drawn to give preference 
to tlie Exchange work and it shall be efjually their duty to immedi- 
atclv notify tlie Ini,pcctnr-in-Chipf if they are unable from any 
rau^f to wi'iirli th(' cotton assigned to them; in such case other 
p.mic^ -li.ili 111- <l!,iwn from the panel of the Board of 'Weighers. 
K.ii it nf Till < i^lit \M'igliers appointed to membership of the Board 
nl Wfijlhi- -lull uliligatc liimself in writing to give preference 
ti. Rvtli.in.'c wurk and to do thi* work allotted to him whether the 
iiniiibpr of Uak's oh which he is drawn shall be large or small, and 
any weigher failing tn nbide by tliis requirement shall be summarily 
rt'UiovGd from niomlier«liip of the Board of Weighers. Such re- 
ntovals sliall bo mafV h\ \niv nf the Conmiittee on Supervision and 
Deliveries Mb., ^bnll |.inrcr,l witliont (h-lav to fill the vacancies thus 
i-aiispil: -.;ihl ('i.MLTnitli 1 -li;ill ,il-n unt^tigate complaints of in- 
I'l'S'lcicnt work ,ind iiia\ Inr t-iu-li t niiM' remove parties from meraher- 
sliip of the Board; pnnidcd tliat any weigher so charged shall be 
permitted to appear before the Conmiittee in defense of his work. 



84 

being provided that neither the Assistant Inspector nor Samplei 
shall pass on any question of grade. 

MIXED PACKED, SANDY, DUSTY, COMPRESSED AND 
SHIPMARKED COTTON. 

Rule 13. Section 1. No mixed packed cotton shall be re- 
ceived on contract. 

Section 2. A bale of cotton shall be considered mixed when 
a difference of more than two grades is shown between samples 
drawn from the heads, top and bottom sides of the bale, or when 
such samples show a difference in color exceeding two grades, said 
grades being the Official Cotton Standards of the United States. 

Section 3. Samples of sandy and dusty cotton shall always 
be classed and kept separate from clean cotton. 

Section 4. Removal of one or more bands from the bale for 
purpose of inspection shall be at the owner's expense, including 
cost of compressing (if any). 

Section 5. In the event of a disagreement as to the quantity 
of sand in any bale or bales, either the Inspector-in-Chief or the 
owner of the cotton may require any such bale or bales to be opened 
and the actual quantity of sand ascertained, all expenses and loss 
incident thereto to be paid by the party in error. 

The bale shall be opened in the presence of representatives of 
the owner and the Inspector-in-Chief, and an amount of cotton 
sufficient to be thoroughly representative shall be taken therefrom, 
and weighed on scales provided by the Exchange; the cotton shall 
then be shaken thoroughly in the presence of both parties, and the 
sand obtained therefrom weighed; such bales as are found to con- 
tain more than one per cent of sand shall be rejected; the per- 
centsige of sand in the other bales shall be marked on the samples 
submitted to the Beard of Classers. 



No. 18. 

AMENDMENT TO SECTION 8 OF RULE 13 OF THE 

FUTURE RULES OF THE NEW ORLEANS 

COTTON EXCHANGE. 

(Adopted by the Board of Directors September 7th, 1921; Posted 
September 7th, 1921; effective September 17th, 1921.) 

Amend Section 8, of Rule 13 of the Future Rules, page 85, by 
expunging the first paragraph thereof as it now reads and substi- 
tuting therefor the following, viz: 

Sec. 8. The charge for compressing on compressed cotton de- 
livered on contract due by the receiver to the deliverer shall be 75 
cents per bale on all compressed cotton wherever stored, except 
such cotton as was compressed at and by the Dock Board Ware- 
house since September 1st, 1920, in which case the charge shall 
be 60 cents, provided the cotton is properly compressed according 
to the standards of the Xew Orleans Cotton Exchange and if 
so certified by the duly authorized employees of the Xew Orleans 
Cotton Exchange. 

The Section as amended will read as follows : 

Sec. 8. The charge for compressing on compressed cotton de- 
livered on contract due by the receiver to the deliverer shall be 
75 cents per bale on all compressed cotton wherever stored, except 
such cotton as was compressed at and by the Dock Board Ware- 
house since September 1st, 1920, in which case the charge shall 
be 60 cents, provided the cotton is properly compressed according 
to the standards of the Xew Orleans Cotton Exchange and if 
so certified by the duly authorized employees of the Xew Orleans 
Cotton Exchange. 

The receiver shall deposit with the Superintendent of the Ex- 
change, by certified check, the same as is done in the case of regular 
future margins, a sum sufficient to cover the cost of compressing 
customary at time of delivery. This amount shall be deposited 
in bank and a certificate of deposit obtained therefor, payable to 
deliverer or receiver as the Superintendent of the Exchange may 
direct. The sum thus deposited shall be held for six months, at 
the expiration of which time the deliverer shall be entitled to same, 
or to such portion of said sum as will cover such bales as retain 
compressing up to standard, the difference to be returned to the 
receiver. 

Should it be determined in less than six months that any or all 
of the bales are not up to standard, the receiver shall be entitled 
to return of amount due on such bales. 



jAt^i^SiiS&ktHEl 



IT 

H AMENDMENT TO RULE 13 OF THE FUTURE 
■// RULES OF THE NEW ORLEANS COTTON 
■7 ^ EXCHANGE— 1920 EDITION. 

I 

m A. 



(Adopted by the Board of Directors April 7, 1920. Posted 
April 8, 1920; effective April 19, 1920.) 

Amend Section 9 of Eule 13 of the Future Rules (Edition of 
1920) by addition of the following: 



Under no circumstances shall the Exchange be held responsible 
for damage accruing to cotton handled under the provisions of 
this rule. 

]^rotice in writing must be sent the Inspection Department when 
cotton handled under this Eule is ready to be moved into store. 

The section as amended will read as follows : 

SAMPLING, ETC., AT RAILROAD DEPOTS. 

Section 9. Cotton may be inspected, weighed and sampled for 
certification at railroad depots, but must Be hauled to and stored 
in an approved storage place for cotton before delivery thereof 
on contract, provided that such cotton shall be under the super- 
vision of the Exchange Inspection Bureau during the time it is 
held in railroad depots, and that transfer from depots to approved 
storage place is made under supervision of said Inspection Bureau 
in order that identity of the cotton may be properly preserved. 

Under no circumstances shall the Exchange be held responsible 
for damage accruing to cotton handled under the provisions of 
this rule. 

Notice in writing must be sent the Inspection Department when 
cotton handled under this Rule is readv to be moved into store. 



--►^ 



\\N 



85 

Section 6. Compressed and shipmarked cotton shall be con- 
sidered a good delivery, provided the same is in merchantable order 
and condition, especially as to at least one space on the top side of 
the bale for re-marking. 

Section 7. When compressed cotton is delivered on contracts, 
the allowances in weights shall be the same as are now or may here- 
after be made for deliveries under the Eules governing sale of 
cotton "to arrive." 

Section 8. Where compressed cotton is delivered on con- 
tracts, the customary cost of compressing in Xew Orleans shall be 
due by the receiver to the deliverer, if found properly compressed, 
according to the standard of the New Orleans Cotton Exchange, 
and if so certified by the duly authorized employees of the Xew Or- 
leans Cotton Exchange. 

The receiver shall deposit with the Superintendent of the 
Exchange, by certified check, the same as is done in the case of 
regular future margins, a sum sufficient to cover the cost of com- 
pressing customary at the time of delivery. This amount shall be 
deposited in bank and a certificate of deposit obtained therefor, 
payable to deliverer or receiver as the Superintendent of the Ex- 
change may direct. The sum thus deposited shall be held for six 
months, at the expiration of which time the deliverer shall be en- 
titled to same, or to such portion of said sum as will cover such 
bales as retain compressing up to standard, the difference to be 
returned to the receiver. 

Should it be determined in less than six months that any or 
all of the bales are not up to standard, the receiver shall be en- 
titled to return of amount due on such bales. 

SAMPLING, ETC., AT EAILEOAD DEPOTS. 

Section 9. Cotton may be inspected, weighed and sampled 
for certification at railroad depots, but must be hauled to and stored 



86 

3n an approved storage place for cotton before delivery thereof on 
'Contract, provided that such cotton shall be under the supervision 
•of the Exchange Inspection Bureau during the time it is held in 
railroad depots, and that transfer from depots to approved storage 
place is made under supervision of said Inspection Bureau in order 
that identity of the cotton may be properly preserved. 

STAPLE COTTON. 

Rule 14. Sectio:?^ 1. Staple cotton may be delivered on con- 
tract and allowed a premium of not in excess of one-quarter (i/4) 
cent per pound. 

Section 2. No cotton, the staple of which measures less than 
one and one-sixteenth (1 1-16) inch in length, shall be considered 
as staple within the meaning of this Eule. 

Section 3. Wlien staple cotton is tendered for inspection, it 
•shall be class-marked and sampled according to length of fibre, 
;and in no case shall it be class-marked and sampled with common 
staple cotton. 

PEEMIUM FOR STAPLE. 

Section 4. In order that value shall be allowed, at least 
ten (10) bales in each contract shall have been decided by the 
Board of Cotton Examiners to have a length of not less than one 
and one-sixteenth (1 1-16) inch. 

Section 5. Upon each transfer of staple cotton, two members 
of the Appeal Committee on Classification (to be drawn by lot by 
the Superintendent) shall act as a Committee on Valuation for 
decision as to value to be allowed for staple, and, unless their de- 
cision is appealed from, the deliverer shall be entitled to collect 
whatever premium may be allowed by said Committee, whether it 
be on the whole or any part of the ten (10) bales that have 
been declared staple cotton by the Board of Cotton Examiners. In 



AMENDMENT TO RULE 14 OF THE FUTURE RULES. 

(Adopted by the Board of Directors April 6, 1921; posted April 
7, 1921; effective April 18, 1921.) 

Expunge Section 7 of Rule l-t of the Future Rules as it now 
stands and substitute therefor the following, viz: 

Sec. 7. (a) Fees for Valuations of staple cotton, to be paid 
by the deliverer, shall be as follows: 

On Certificated cotton where no examination of samples is 
necessary, 

$1.00 for each arbitrator on certificates embracing from One 

(1) to twenty-five (25) bales; 

1.50 per arbitrator on 26 to 50 bales; 

2.00 per arbitrator on 51 to 75 bales; 

3.00 per arbitrator on 75 to 100 bales; 

and four (4) cents a bale to each arbitrator on all over 100 bales. 

The foregoing scale of charges shall apply on Appeals to an 
Appeal Committee on Valuation, said charges to be paid by the 
party whose claim differs most from the final award. 

(b) Fees on Valuations, and Appeals from Valuations on 
staple, where physical examination of samples of spot cotton is 
necessary, shall be: 

$3.00 per arbitrator on 1 to 60 bales; 
5.00 per arbitrator on 61 to 100 bales, 
and five (5) cents per bale to each arbitrator on all over 100 bales. 

In case the two arbitrators on valuation provided for in Sec- 
tion 5 of this Rule shall call in a third arbitrator, his share shall 
be one third of the total fees, to be paid in equal parts from the 
fees of the two arbitrators. 

The fees for valuations to be paid by the party requesting 
valuation and for appeals to be paid by the party whose claim 
differs most from the final award. 

This Exchange shall not be put to any expense imder this rule. 



87 

determining values, the Valuation Committee shall be guided by 
the certificates of the Board of Cotton Examiners, and, when allow- 
ance is made, it shall be in accordance with the actual market value 
of like staple, but in no event shall more than one-quarter (%) 
cent per pound be allowed on account of staple. 

Section 6. In event of appeal from the decision of the Valu- 
ation Committee, the Superintendent shall draw three other mem- 
bers from the Appeal Committee on Classification, who shall act 
as an Appeal Committee on Valuation, whose decision shall be final. 

The duty of the Committee on Valuation and the Appeal Com- 
mittee on Valuation shall be to award value for staple, and not to 
determine whether or not cotton has staple. 

Where appeals from decisions of the Committee on Valuation 
are miade, the party appealing must notify the opposite party in 
writing of his demand, and state explicitly what that demand is, by 
11 O'clock a. m. of the day following the receipt of the award of 
the Committee on Valuation. 

The opposite party shall, before 2 p. m. of the same day, notify 
the party appealing what concession, if any, he is willing to make. 
Tlie proposition so made, signed by both parties, shall, unless such 
concessions be accepted, be sent in a sealed envelope to the Super- 
intendent of the Exchange. 

The decision of the Appeal Committee on Valuation shall be 
made as soon as practicable, in writing, and filed with the Superin- 
tendent of the Exchange, who shall serve a copy thereof upon each 
party interested. 

Section 7. Fees for valuation of staple cotton shall be five 
(5) cents per bale for each arbitrator, to be paid by the deliverer, 
whether value is allowed or not, but, in event of appeal, the appeal 
fees, which shall be five (5) cents per bale for each member of the 
Appeal Committee on Valuation, shall be paid by the party whose 
appeal differs most from the final award, provided that the Ex- 
change shall be put to no expense therefor. 



88 



Section 8. If any member drawn to serve on either the Com- 
mittee on Valuation or Appeal Committee on Valuation is dis- 
qualified or unable to attend, the Superintendent shall draw an- 
other in his stead. 

SPOT QUOTATIONS. 

EuLE 15. Section 1. The Spot Quotation Committee shall 
be required to quote all grades of spot cotton for which standards 
are promulgated by the Secretary of Agriculture under the United 
States Cotton Futures Act, and such grades, above and below the 
Officiar Cotton Standard of the United States as are sold in the 
market, and such quotations, shall be expressed in terms of cents 
and hundredths of a cent. A fraction of a hundredth, when equal 
to or greater than a half, shall be treated as a hundredth, and when 
less than a half of a hundredth shall be disregarded. 

Section 2. Settlements of grade differences to liquidate a 
future contract shall be made on the actual grade differences of the 
United States Official Cotton Standards, as promulgated in accord- 
ance with the requirements of Section 6 of the United States Cotton 
Futures Act (which differences shall be separately noted on the 
Exchange boards) as existing on the sixth business day prior to 
the day on which delivery is due. 

Section 3. Unless prohibited by law or by ruling of the Sec- 
retary of Agriculture, the value of cotton "within," midway between, 
the grades promulgated by the Secretary of Agriculture shall be 
considered the mean of the adjacent grades. 

Section 4. Cotton containing sand or dust not rejectable 
under the contract shall be valued at one-eighth of a cent per pound 
under quotations. 

Premium for staple shall be determined by the Appeal Com- 
mittee on Classification. 



::SeSiR£SL 



No. 10. 

AMENDMENT TO RULE 19 OF THE FUTURE RULES OF 
THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Eoard of Directors November 22nd, 1920; posted 
November 22nd, 1920; effective November 22nd, 1920). 

Add the following as Section 5 of Eule 15 of the Future Rules 
(Edition of 1920) page 88: 

Sec. 5. Cotton originating in Pink Bollworm territory and 
therefore precluded from shipment into designated areas by the 
quarantine regulations of the United States Grovernment, shall, 
when delivered on contracts for future delivery, be valued at one 
(1) cent a pound under quotations. 



v-F r. WnT^ny/i/irn TPnoTi (->miimi 



No. 14. 

Amendment to Rule 15 of the Future Rules 
of the New Orleans Cotton Exchange* 

(Adopted by the. Board of Directors February 2nd, 1921; posted 
February 2nd, 1921; effective February 12th, 1921.) 

Add at end of Section 5 of Eiile 15 of the Future Eules the 
words : 

"It shall be incumbent on the deliverer to notify the receiver 
when the cotton delivered includes cotton originating in the Pink 
Boll Worm territory, and to make due notation with allowance of 
One (1) cent per pound, as above required, on invoice." 

The Section as amended will then read: 

Sec. 5. Cotton originating in the Pink Boll Worm territory 
and therefore precluded from shipment into designated areas by 
the quarantine regulations of the United States Government, shall,, 
when delivered on contracts for future delivery, be valued at one 
(1) cent a pound under quotations. It shall be incumbent on the' 
deliverer to notify the receiver when the cotton delivered includes' 
cotton originating in the Pink Boll Worm territory, and to make 
due notation with allowance of one (1) cent per pound, as above 
required, on invoice. 



89 

INSPECTION AND CLASSIFICATION: HOW PROCURED, 
LIMIT OF TIME FOR APPEAL. 

Rule 16. Section 1. Any member of the Exchange desiring 
the inspection of cotton shall notify the Inspector-in-Chief in 
writing, stating the number of bales, marks^, and places where such 
inspection is desired, which places must be at approved storage 
places for cotton, and at the same time furnish the Inspector-in- 
Chief with a list of such marks and class-marks as he may desire 
to have placed upon the bales. 

Such notice must be lodged in the office of the Inspector-in- 
Chief not later than 3 o'clock p. m. on the day preceding the day 
for which the inspection is demanded. 

If for any cause whatever, except inclement weather, the cotton 
to be inspected is not ready for inspection, the owner of the cotton 
may be liable to the Inspection Bureau for the loss, if any, caused 
by reason of the delay. The Inspector-in-Chief shall report such 
cases to the Committee on Supervision and Deliveries, which shall 
determine the amount of money to be due, and require its payment. 

In the absence of any direction as to marking, the Inspector- 
in-Chief shall order the inspection to proceed as though the marks 
already upon the bales were those designated to be placed there, 
supplementing the same with tags for identification. 

Section 2. Form of Request for the Ixspection and 
Weighing of Cotton : 

New Orleans, 19.... 

To............. 

Inspector-in-Chief, 

New Orleans Cotton Exchange: 
We respectfully request that you detail an Assistant Inspector, 

Sampler and a licensed Weigher to be present at the 

who, together, shall weigh, sample 

and inspect the following lots of cotton, the samples of which to 



90 

be submitted to the Board of Cotton Examiners in accordance with 
Regulation 4 of the Regulations of the Secretary of Agriculture. 

Respectfully, 



Section 3. After receiving such notification, it shall be the 
duty of the Inspector-in-Chief, as soon as possible, to detail an 
Assistant Inspector, a Sampler and a Weigher to carefully inspect, 
sample and weigh the cotton, placing upon the bales such re-marks 
as his instructions cover, and a lot number, which lot number shall 
be the same on each bale comprising the lot or class mark. Each 
bale shall be securely tagged for identification and a duplicate and 
triplicate of the tag shall be placed in the samples of the bale sent 
to the Board of Cotton Examiners. Said tags to contain the lot 
number and such other marks as may be determined. The samples 
shall be kept in separate papers for each class mark in the lot. The 
cotton shall be carefully examined to see that the bales are mer- 
chantable. The sampling shall be done by Samplers of the Ex- 
change, and the weighing by a Weigher of the Exchange. The 
sampling must be under the supervision and direction of the Assist- 
ant Inspector in charge, but no Sampler or Weigher shall be em- 
ployed who is in the service of any person interested in the cotton 
to be inspected. 

Section 4. Where cotton is tendered for inspection that, in 
the opinion of the Inspector, contains moisture to such an extent as 
to make it possible that damage might result from its being stored, 
the Inspector-in-Chief shall require a personal guarantee in writing 
from the party or parties having it inspected, to the effect that such 
party or parties assume all liability for claims arising from such 
damage, or he, the Inspector-in-Chief, may, at his discretion, re- 
ject such cotton until it is in proper condition. 

Section 5. After the samples shall have been drawn they shall 
be sealed at the press and immediately sent to the Inspecfor-in- 



91 

Chief, and, as soon as practicable thereafter, they shall be delivered 
to the Board of Cotton Examiners for Classification under Eegu- 
iation 6 of the Eegulations of the Secretary of Agriculture issued 
May 22nd, 1919 (see Appendix). 

In addition to the samples to be delivered to the Board of 
Cotton Examiners, separate samples, if desired, may be furnished to 
the owner of the cotton under Eegulation 5, Section 10. 

Appeals from the decisions of the Board of Cotton Examiners 
are provided for under Eegulation 10 of the Eegulations of the 
Secretary of Agriculture issued May 22nd, 1919 (see Appendix) . 

Disposition of samples is provided for as per Eegulation 5 
(see Appendix). 

CLASSIFICATION: HOW MADE— TJNTENDEEABLE 
COTTON. 

EuLE 17. For the purposes of Section 5 of the United States 
Cotton Futures Act, as amended, the classification of cotton ten- 
dered on future contracts can only be determined by the Cotton 
Examiners designated by the Chief of the Bureau of Markets of the 
Department of Agriculture. 

The order of classification, exposure of samples, application 
of grade to samples, descriptions of irregular cotton, shall be as set 
forth in Eegulation 6 of the Secretary of Agriculture, issued May 
22nd, 1919 (see Appendix). 

SAMPLES EETAINED BY INSPECTOE-IN-CHIEF; 
OWNEESHIP OF DUPLICATES. 

EuLE 18. The two sets of samples for the purposes of inspec- 
tion and grading shall be the property of the party holding the 
stamped warehouse receipt and the Board of Cotton Examiners' 
certificate of grade, one set of which shall be retained by the said 
Board. 

The set of samples not retained by the Board of Cotton Ex- 



aminers shall be delivered to the order of the party holding the 
warehouse receipt, and said party shall be' responsible for such 
samples one week after the issuance of the certificate of grade and 
thereafter. 

Upon the delivery of any contract, the samples thereof shall 
be delivered to the receiver within not more than two (2) business 
days from the date of the contract delivery, and the samples of any 
one contract shall be delivered from one place or oflSce to the re- 
ceiver of the contract, and for failure to deliver the samples of any 
contract within the time or within the manner prescribed in this 
Eule the party delivering the contract shall pay the receiver thereof 
the sum of ten dollars per contract, but the payment of this penalty 
shall not relieve the party delivering the contract of any responsi- 
bility for the samples. 

WAEEHOUSE RECEIPTS, WHEN AND HOW ISSUED— TO 
BE STAMPED BY INSPECTOR-IN-CHIEF. 

Rule 19. Section 1. After cotton has been sampled and 
weighed, negotiable warehouse receipts stating the marks of bales, 
lot numbers and entries on identification tags, shall be immediately 
issued to owners of cotton, a separate receipt for each lot; no re- 
ceipt to be for more than about one hundred bales, or fifty thousand 
pounds; such receipts shall be lettered or numbered by each ware- 
house consecutively, and no two receipts shall bear the same letter 
or number. 

Section 2. Upon presentation by the owner of such warehouse 
receipts to the Inspector-in-Chief at his office, if shall be the duty 
of the Inspector-in-Chief to stamp thereon the weight of the cotton 
in accordance with the records of his office. 

CERTIFICATES OF GRADE, HOW AND WHEN ISSUED. 

Rule 20. Section 1. Issuance of certificates of gra^e and 
conditions, and procedures relative thereto, shall be as set forth in 



?i*>K'' . -■^ .■-^. 



^M^ 



AMENDMENT TO RULE 19 OF THE FUTURE 

RULES OF THE NEW ORLEANS COTTON 

EXCHANGE— 1920 EDITION. 



(Adopted by the Board of Directors April 7, 1920. 
April 8, 1920; effective April 19, 1920.) 



Posted 



Amend Eule 19 of the Future Eules (Edition of 1920) by in- 
sertion of the following at the end of Section 1 : 

Presses and warehouses must assume all responsibility for loss 
or damage to cotton for which a clean receipt has been issued. 



■ T%4 




No. 13. 

Amendment to Rule 1 9 of the Future Rules 
of the New Orleans Cotton Exchange. 

(Adopted by the Board of Directors February 2nd, 1921; posted 
February 2nd, 1921; effective February 12tb, 1921.) 

Amend Eule 19, Section 1, page 92 of the Future Eules, as 
amended April .7, 1920, by addition of the following thereto, viz : 

"Except for concealed damage or damage caused by an Act of 
Providence." 

The Section as amended will then read as follows: 

EULE 19 OF THE FUTUEE EULES. 

"Sec. 1. After cotton has been sampled and weighed, negoti- 
able warehouse receipts stating the marks of bales, lot numbers and 
entries on identification tags, shall be immediately issued to owners 
of cotton, a separate receipt for each lot ; no receipt to be for more 
than about one hundred bales, or fifty thousand pounds; such re- 
ceipt shall be lettered or numbered by each warehouse consecutively, 
and no two receipts shall bear the same letter or number. 

Presses and warehouses must assume all responsibility for loss 
or damage to cotton for which a clean receipt has been issued, ex- 
cept for concealed damage or damage caused by an Act of Provi- 
dence." 



93 

Eegulation 7 of the Eegulations of the Secretary of Agriculture, 
issued May 32nd, 1919 (see Appendix), 

Section 2. Any certificate issued under a Section 5 Contract 
shall be invalid if the cotton represented thereby be in any way 
handled, whether for sampling, examination or otherwise, except 
when done under the direction and supervision of the Inspection 
Bureau of the Exchange (see Regulation 7, Section 9, of Eegula- 
tions of the Secretary of Agriculture) , and the charge for such 
supervision shall be three (3) cents per bale. 

Section 3. The form of request for supervision of cotton 
withdrawn from certificates shall in all cases be as follows : 

I^EW Orleans, 19 ... . 

To the Inspedtor-in-Chief, 

New Orleans Cotton Exchange: 
We respectfully request that you detail a representative of your 

Department to be present at to 

supervise the delivery of bales, which it is desired 

to withdraw from Certificates 

WHAT CONSTITUTES A GOOD DELIVEEY. 

EuLE 21. Section 1. Negotiable press or warehouse receipts, 
signed by the warehouseman, indorsed by the party in whose favor 
they are drawn (which indorsement must be witnessed) and ac- 
companied by a certificate of grade issued by the Board of Cotton 
Examiners of the United States Department of Agriculture, or by 
the seller's own written notice of grade, validated by the Chairman 
of the Board of Cotton Examiners as per Eegulation 8, Section 4, 
of the Eegulations of the Secretary of Agriculture (see Appendix), 
shall be a good deliver}^ in fulfillment of contract for future de- 
livery, and shall be deemed a liquidation of the contract on which 
such delivery is made, and the member receiving the same shall re- 
turn to the member making the delivery his transferable notice. No 



94 

warehouse receipt shall be tendered which does not bear the stamp 
of the Inspection Bureau and the weight of the cotton. The de- 
livery of the cotton shall be considered complete when warehouse 
receipts and certificates of grade, as above provided, shall have been 
delivered to the receiver; but this provision shall not relieve either 
party from liability in the final adjustment of accounts resulting 
from issuance of class certificates in lieu of seller's notices, or from 
Keviews of Classification (see Eegulation 10, Appendix). 

Section 2. If delivery of press or warehouse receipts in fiul- 
fillment of a contract for future delivery has been accompanied by 
the seller's validated written notice of grade only, the certificates 
of grade, as determined by the Board of Cotton Examiners, shall 
be delivered to the receiver of the cotton before the close of business 
on the date of their issuance, if delivered to the tenderer before 
11 a. m. of that d-ay. If the certificates of grade are delivered to 
him after 11 o'clock a. m. on that day, the tenderer shall, in turn, 
deliver them to the receiver before 11 o'clock a. m. of the following 
business day (see Appendix, Eegulation 8, Section 5). There shall 
be no replacement of bales shown by such certificates to be un- 
tenderable (see Appendix, Eegulation 8, Section 5). Final settle- 
ment shall be made within twenty-four hours after the expiration 
of the time allowed for delivery of certificates of grade as above pro- 
vided, except in event of application for review. Failure to comply 
with these provisions shall make the deliverer liable to the receiver 
for a penalty of five dollars per diem on every contract, payable to 
the other party at interest. Notice of application for review, 
specifying the demands made, must be given to the other party at 
interest at the time of making such application. 

In event of a review (appeal) of any lot of cotton, certificate 
thereof shall be delivered within forty-eight hours of its receipt, 
Sundays and legal holidays excepted, and final settlement shall be 
made within twenty-four hours after the time allowed for delivery 
of the certificate as above. The penalty for failure to comply with 



No. 9. 

Amendment to Rule 21 of the Future Rules 
of the New Orleans Cotton Exchange* 

(Adopted by the Board of Directors September 3rd, 1920; Posted 
September 7th, 1920; Effective September 17th, 1920.) 

Expunge Section 3 of Eule 21 of the Future Eules, page 95 
of the 1920 edition, and substitute therefor the following: 

Sec. 3. x\ll deliveries or tranfers of cotton must be free of 
all press or warehouse charges thereon to date of delivery or trans- 
fer, and deliverer's invoice shall make deduction for storage ac- 
crued up to date of delivery. 







MMJiriTWuim iii iiiW ii n m 



1 



95 

this provision shall be five dollars per diem on every contract, pay- 
able to the other party at interest. (For reviews, see Appendix, 
Regulation 10.) 

Section 3. All deliveries or transfers of cotton must be free 
of all press or warehouse charges thereon to date of delivery or 
transfer. 

Section 4. The grade stated in the Board of Cotton Ex- 
aminers' certificate of grade shall be binding on all parties, and the 
weight as noted by the Inspection Bureau on the press or warehouse 
receipt shall be binding on all parties, subject, however, to an 
allowance of a half pound per bale per month or fraction of a month, 
except when cotton is delivered within fifteen (15) days after being 
weighed and inspected, in which case no allowance shall be made. 

Section 5. Written notification of the holding of a transfer- 
able notice, after having been stamped and numbered by the Super- 
intendent of the Exchange, shall be given before 4 o'clock p. m. 
(except on Saturdays, and on Saturdays not later than 2 p. m.) 
on the day previous to the day delivery is due thereon, by the holder 
to the member issuing the transferable notice, and shall be accepted 
as a legal demand for the cotton. The issuer of the notice shall, 
before 2 o'clock p. m. on the day of delivery, tender to the member 
holding said transferable notice a warehouse receipt or receipts in 
the manner and form hereinbefore provided, together with a vali- 
dated written notice of grade or a certificate or certificates of grade,, 
issued by the Board of Cotton Examiners, for about fifty thousand 
pounds of cotton, said cotton to be in not more than two storage 
places for cotton. A bill for the cotton, giving marks and location 
and name of storage place or places, shall be rendered before 11 
o'clock a. m. on the day of delivery, with allowance for grade, 
staple and weight as hereinbefore stated. Provided, that where de- 
liveries are made on Saturdays bills for the cotton, giving marks, 
location and name of storage place or places, shall be rendered be- 



96 

fore 10 o'clock a. m., and warehouse receipt or receipts shall be 
tendered before 11 :30 a. m. 

TRANSFERABLE NOTICES. 

Rule 22. Where notice of delivery by the seller is required 
by a contract, it shall be given to the buyer five minutes before the 
opening of the future business, on the fifth business day prior to 
the date of delivery, except when delivery is to be made upon the 
last day of the .month, in which case notice of delivery shall be 
given by the seller before fifteen minutes after 12 o'clock noon on 
the last day of the month upon which transferable notices may be 
issued ; provided, that when the last notice day of the month occurs 
on a day on which the business hours do not exceed two hours, 
notices on that day shall be issued not later than fifteen minutes 
prior to the close. 

The party receiving the notice may transfer the same to another 
party, and it may be given from one transferee to another. Every 
transfer must be made promptly within twenty minutes after the 
time of receipt, and every person receiving the notice shall indorse 
upon it the time of receipt ; provided, that notices issued on the last 
notice day of the month must be transferred within ten minutes 
after time of receipt. Any party or parties who may fail to forward 
such notice within that time shall be liable to a penalty of 25/lOOc 
per pound in favor of the party with whom it may lodge at the 
close of the day. All transfers shall be made previous to the closing 
hour of the future business in the Exchange. All differences there- 
on to be paid as provided for in Rule 48 for payment of ring settle- 
ments. Should the office of the party to whom notice is to be given 
be closed, it shall be good service to give the notice to the Superin- 
tendent of the Exchange. He shall indorse thereon the day and 
time of its receipt, and post notice thereof on the bulletin of the 
Exchange. 



97 

Every notice shall be for 50,000 pounds of cotton, and, in form, 

as follows : 

TEANSFEEABLE NOTICE. 

O'clock. New Orleans^ 19 

To.T.&Co.: 

Take notice, that on we shall deliver you 50,000 

pounds, in about one hundred square bales, of cotton, in accordance 

with the terms of our contract of sale to you, dated 

at cents per pound. We pledge ourselves to deliver on the 

day specified for delivery, to the last holder hereof, warehouse 
receipt or receipts, together with a written notice of grades or a 
certificate or certificates of grade (as provided in Eule 21 of the 
Future Eules), upon written notice by the last holder of this notice 
of the holding of same to us (not later than 4 p. m., except on Sat- 
urdays, and on Saturdays not later than 2 p. m.) on the business 
day previous to the one herein specified for deliver}^ of the cotton. 
This notice to be delivered to us simultaneously with our delivery 
of the warehouse receipt or receipts to the holder hereof. 

F. G. & Co. 

Conditions. 

In consideration of one ($1) dollar paid to each of the ac- 
ceptors, receipt of which is hereby acknowledged, it is agreed that 
the last acceptor hereof will, before 4 p. m. (except on Saturdays, 

and on Saturdays not later than 2 p. m.) on the day 

of , give written notice of the holding of this 

notice to (F. G. & Co.), and on the day of 

receive from (F. G. & Co.) warehouse receipt or receipts, together 
with a written notice of grade, or a certificate or certificates of 
grade (as provided in Eule 21 of the Future Eules) for about 100 
square bales of cotton, and pay them, on receipt of warehouse re- 
ceipt or receipts, the full amount of cents per pound there- 



98 

for, settling with them on the basis of Middling, with allowances 
for variation in grade, as provided in Section 6 of the United States 
Cotton Futures Act, existing on the sixth business" day previous to 
the day on which the delivery is due. It is further agreed that 
each acceptor hereof shall continue his (or their) liability to each 
other for the fulfillment of the contract until this notice shall have 
been returned to F. G. & Co., and warehouse receipt or receipts 
for the cotton to be delivered received by the last acceptor hereof 
from F. G. & Co., at which time all responsibilities of intermediate 
parties shall cease. T. & Co. 

FORM OF TEANSFER. 

O'clock. New Orleans, 19 ... . 

Messers. I. 8. & Co.: 

We accept the above with all its conditions and obligations, 
and you will please take notice that in accordance therewith we shall 
deliver you 50,000 pounds in about one hundred square bales cotton 

on account of OUR contract sale to you, dated the 

cotton to be paid for at the price of transferable notice. 

T. & Co. 

Such notice, if tendered by the drawer five minutes before the 
opening of the future business on the fifth business day before the 
delivery of cotton is due, shall be accepted by any member of the 
Exchange to whom cotton is due under any contract, and the price 
shall be made equal to the price of the contract on which it shall be 
tendered, provided that it is otherwise in accordance with such 
contract, and the cotton delivered on such notice shall be accepted 
as so much received in fulfillment of the contracts specified in the 
notice and transfer. Any party holding such notice and failing to 
present written notice of the same to the drawer thereof before 
4 p. m. (except on Saturdays, and on Saturdays not later than 
2 p. m.) of the business day before the one specified therein for 



99 

delivery of cotton shall subject himself to a penalty of one hundred 
and twenty-five dollars for each notice, to be paid to the drawer 
thereof, the contract to remain in full force. 

No member of the Exchange shall make a fictitious or fraudu- 
lent use of any name or names to fill up the time in the issue or 
transfer of any notice for future delivery of cotton on contract; 
and any member who shall be found guilty by the Future Com- 
mittee of such fictitious or fraudulent use of any name or names 
shall, in such case, pay to the party with whom the notice may 
be lodged at the close of the day a penalty, by way of damages, of 
one-quarter (%) of one cent per pound; and in addition thereto 
may, upon a repetition of the offense, be suspended by the Board 
of Directors. 

The Superintendent of the Exchange shall, at the close of each 
day, post on the bulletin of the Exchange the price at which trans- 
ferable notice shall be issued on the following day. The price so 
posted shall be within ten one-hundredths of one cent per pound 
of the closing price for like deliveries. 

WHEN TEADING IN CUERENT MONTHS SHALL CEASE. 

EuLE 23. All trading in current months shall cease at noon 
on the last business day upon which transferable notices may be 
issued, except on days when the business hours do not exceed two 
hours; on such days trading shall cease a half hour prior to the 
closing, and notices shall -be issued prior to fifteen minutes before 
the closing. Transferable notices may be issued on that day at any 
time up to fifteen minutes after 12 o'clock noon in fulfillment of 
all trades. Every transfer of a notice issued under this Rule shall 
be made within ten minutes of the time of receipt. Every notice 
issued under this Rule shall be accepted in fulfillment of any con- 
tract for future delivery. Except as herein provided, all provisions 
of Rule 22 in regard to transferable notices shall apply to notices 
issued under this Eule. 



100 

RECORD OF DELIVERIES ON CONTRACT— PENALTY 
FOR FAILURE TO HAVE NOTICES STAMPED. 

Rule 24. Section 1. A record shall be kept by the Super- 
intendent of the Exchange of the demands stamped each day as 
required in Section 5 of Rule 21, and each transferable notice shall 
be considered one hundred bales. The total number of bales so de- 
livered shall be posted daily. 

Section 2. Failure on part of the holder of a transferable 
notice to have his notice of demand so stamped shall subject him 
to a fine of five dollars ($5.00) for each contract of a hundred bales 
not stamped. It shall be the duty of deliverer to report to the 
Superintendent of the Exchange such notices of demand received 
by him not stamped, and failure to make such report shall subject 
the deliverer also to a fine of five dollars ($5.00) for each contract 
of one hundred bales not reported. 

SETTLEMENT OF CONTRACTS. 

Rule 25. Section 1. In case of failure to deliver any por- 
tion of the cotton named in the contract when due, no obstacle 
having been made by the buyer, the basis of settlement of cotton 
due on such contract for default in delivery shall be 25/lOOc per 
pound above the quotations for spot cotton of the day of delivery. 
And if failure to receive any portion of the cotton so named in 
contract shall prove to be the fault of the buyer, the settlement 
shall be made at the quotations for spot cotton of the day follow- 
ing, with the addition of 25/lOOc per pound in favor of seller. 
Provided, however, that no seller shall be entitled to receive penalty 
unless he has given the stipulated notice of intention to deliver; 
and no buyer (who has not received notice), unless demand is 
made by him six days before expiration of the contract. Provided, 
also, that no defaulting party can claim settlement under this Rule, 
except upon evidence that the default was unintentional and not 
premeditated. Nothing, however, in this Rule shall be construed 



No. 11. 

AMENDMENT TO RULE 24 OF THE FUTURE 

RULES OF THE NEW ORLEANS 

COTTON EXCHANGE. 

(Adopted by the Board of Directors January 5th, 1921; Posted 
January 8th, 1921; Effective January 18th, 1921.) 

Add the following as Section 3 of Eule 24 of the Future Rules 
(page 100, Edition of 1920) viz: 

"Sec. 3 — In order that this Exchange may comply with Section 
11 of Eegulation 7 of the Government Regulations under the United 
States Cotton Futures Act, members removing Certificated Cotton 
from Warehouse shall make report thereof to the Chief of the 
Inspection Bureau within three (3) days after such removal. 
Members failing to make such report shall pay to the Inspection 
Bureau Ten Dollars for each hundred bales or part thereof not so 
reported." 




AMENDMENT TO RULE 24 OF THE FUTURE RULES OF 
THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors May 4th, 1921; Posted 
May 4th, 1921; effective May 14th, 1921.) 

Strike out Section 3 as adopted January 5th, 1921, and sub- 
stitute therefor the following: 

Sec. 3. In order that this Exchange may comply with Section 
11 of Regulation 7 of the Government Regulations under the 
United States Cotton Futures Act, members removing Certificated 
Cotton from Warehouse or otherwise invalidating certificates, shall 
make report thereof to the Chief of the Inspection Bureau within 
three (3) days after such removal or invalidation. Members failing 
to make sj^ich report shall pay to the Inspection Bureau Ten Dollars 
for each hundred bales or part thereof not so reported. 



101 

to prevent a settlement by mutual agreement. Xo claim under 
this Eule shall be allowed unless the variation is in excess of five 
hundred (500) pounds. 

In event of tender by the deliverer of his own notice of grade 
validated by the Chairman of the Board of Cotton Examiners, fol- 
lowed by certificate of grade as determined by said Board of Ex- 
aminers, there can be no replacement af bales shown by such cer- 
tificate to be untenderable. (See Appendix, Eegulation 8, Section 
5.) Settlement for such untenderable bales shall be 25/lOOc per 
pound above the quotations for Spot Cotton on the day on which 
final certificate of class is delivered to the receiver. 

If the determination of a review (appeal) granted a receiver 
of cotton tendered on contract shows cotton previously ' classed as 
tenderable to be actually untenderable, the tenderer shall replace 
the cotton so found to be untenderable. Such replacement shall be 
made not later than the expiration of the fifth business day follow- 
ing the date of the issuance of the Review Certificate, by delivering 
to the receiver other cotton shown to be tenderable by cotton class 
certificates of the Board of Cotton Examiners, which certificates 
he shall deliver to the receiver. (See Appendix, Regulation 10, 
Section 11.) 

Failure to make delivery of, or to receive and pay for press or 
warehouse receipts and notices or certificates of grade in the manner 
and within the time specified in these Rules, shall be regarded as 
a default on the contract, and settlement of such, with penalty 
attached, shall be made as above provided. 

Section 2. Any member who may find that he holds for ac- 
count of various constituents, contracts, both of sale and purchase, 
in same month which offset each other, shall be authorized to 
offset and settle such contracts and to ^substitute therefor other 
names than those to or from whom he originally sold or purchased ; 
provided, that in such eases he shall be deemed guarantor to his 
principals for the strict fulfillment of such contracts, and shall be 



102 

liable to them for all damage or loss they may sustain by reason 
of such substitution. 

PAYMENT FOR COTTON" DELIVERED ON CONTRACTS 

Rule 26. The member receiving a warehouse receipt and 
notice or certificate of grade shall at once pay to the member pre- 
senting the same, by a certified check, the amount due for the 
cotton at the price of the transferable notice, with additions or 
deductions for grade as determined under provisions of Section 6 
of the United States Cotton Futures Act. Bill to be rendered as 
provided in Rule 21. Provided, however, that in event a deliverer 
tenders cotton upon his own validated notice of grade, the receiver 
shall pay only ninety (90) per cent of the price of the cotton to 
the deliverer, and deposit the remaining ten per cent through the 
Exchange in trust to be paid over to the parties as their interests 
may appear, as provided in Rule 21. 

Deposits through the Exchange under this Rule are at the risk 
of the party to whom the money may be due, and in case of failure 
of any bank or trust company in which such money has been de- 
posited it shall be at the loss of the party or parties to whom it may 
be found due. 

CERTIFICATED COTTON DAMAGED BY FIRE. 

Rule 27. Any certificated cotton damaged by fire, smoke or 
water, shall not be considered a good delivery on contract except as 
hereinafter provided. 

In case of fire occurring in a licensed or approved place for 
the storage of cotton, in which is stored any certificated cotton, the 
Inspector-in-Chief shall forward to the Chairman of the Board of 
Cotton Examiners and to the Superintendent of the Exchange lists 
of the lot numbers and bales of all lots of cotton contained in such 
storage places as have been at all damaged by fire, smoke or water. 



i No. 15. 



1 



No. 13. 




AMENDMENT TO RULE 28 OF THE FUTURE RULES OF 
THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors May 4th, 1921; Posted 
May 4th, 1921; effective May 14th, 1921.) 

Expunge Section 1 of E."iile 28 as it now reads and substitute 
therefor the following: 

CHARGES FOR CERTIFIATE OF GRADE AND FOR 
APPEALS— FEES ON REJECTIONS— DISPOSI- 
TION OF INSPECTION FUND. 

Rule 28. Section 1. The charge to be paid to the Exchange 
for inspecting, weighing, sampleing, examining and delivery of 
samples to the Board of Cotton Examiners shall be seventy (70) 
cents per bale one-half of which shall be paid by the receiver of 
the cotton to the party making delivery. The cost of classification 
and certification to be paid to the Government are as set forth in 
Regulation 12 of the Regulations of the Secretary of Agriculture, 
issued May 22nd, 1919, for which see Appendix, one-half of which 
shall be paid by the receiver to the deliverer. • 

In the event that the charges for certification by the Exchange 
or the Government are in any way changed, the receiver shall pay 
to the deliverer one-half of all certificating charges in effect on the 
day on which the notice of delivery is issued. 

The bills for charges made by the Exchange shall be rendered 
by the Inspector-in-Chief to the party by whom the inspection is 
ordered, and the Inspector-in-Chief shall furnish a memorandum 
of such bills to both the. Superintendent and Treasurer of the 
Exchange. 



jmyi'^r' "^ ^'•' ir"- - '- 



Xo. 15. 



No. 19. 

AMENDMENT TO RULE 28 OF THE FUTURE 

RULES OF THE NEW ORLEANS 

COTTON EXCHANGE. 

(Adopted \>j the Board of Directors Xovember 5th, 1921; Posted 
November 5th, 1921; Effective November 15th, 1921.) 

Amend Section 1 of Rule 28, Page 103 of the Future Eules 
(1920 Edition by changing the words and figures ^'fifty-eight 
(58)" in the first subdivision to read "fifty-one (51)." 

The Section as amended will then read as follows: 

CHARGES FOR CERTIFICATE OF GRADE AND FOR 
APPEALS— FEES ON REJECTIONS. 

Disposition of Inspection Fund. 

EuLE 28, Section 1 — The charge to be paid to the Exchange for 
inspecting weighing, sampling, examining and delivery of samples 
to the Board of Cotton Examiners shall be fifty one (51) cents 
per bale, one half of which shall be paid by the receiver of the 
cotton to the party making delivery. The cost of classification and 
certification to be paid to the Government are as set forth in Eeg- 
ulation 12 of the Eegulations of the Secretary of Agriculture, 
issued May 22nd, 1?19^ for which see Appendix, one half of which 
shall be paid by the receiver to the deliverer. 

In the event that the .charges for certification by the Exchange 
or the Government are in any way changed, the receiver shall pay 
to the deliverer one half of all certificating charges in effect on 
the day on which the notice of delivery is issued. 

The bills for charges made by the Exchange shall be rendered 
by the Inspector in Chief to the party by whom the inspection is 
ordered, and the Inspector in Chief shall furnish a memorandum 
of such bills to both the Superintendent and Treasurer of the 
Exchange. 




1^ r.. ^— ^. ^ ^^..^ ^ ^ ^ it'-^r- - ■"^' — ^-^ — 



I 



m. 15. 

AMENDMENT TO RULE 28 OF THE FUTURE RULES 
OF THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors June 28th, 1921; Posted 
June 29th, 1921; Effective from and after August 1st, 1921). 

Amend Section 1 of Rule 28 of the Future Rules (page 103, 
Edition of 1920) as amended May 4th, 1921, by changing the 
word and figures "seventy (70)" to read "fifty-eight (58)." 

The Section as amended will read as follows : 

CHARGES FOR CERTIFICATE OF GRADE AND FOR 
APPEALS— FEES ON REJECTION— DISPOSI- 
TION OF INSPECTION FUND. 

Rule 28. Section 1. The charge to be paid to the Exchange 
for inspecting, weighing, sampling, examining and delivery of 
samples to the Board of Cotton Examiners shall be fifty-eight (58) 
cents per bale, one-half of which shall be paid by the receiver of 
the cotton to the party making delivery. The cost of classification 
and certification to be paid to the Government are as set forth 
in Regulation 12 of the Regulations of the Secretary of Agricult- 
ure, issued May 22nd, 1919, for which see xlppendix, one-half of 
which shall be paid by the receiver to the deliverer. 

In the event that the charges for certification by the Exchange 
or the Government are in %iy way changed, the receiver shall pay 
to the deliverer one-half of all certificating charges in effect on 
the day on which the notice of delivery is issued. 

The bills for charges made by the Exchange shall be rendered 
by the Inspector-in-Chief to the party by whom the inspection is 
ordered, and the Inspector-in-Chief shall furnish a memorandum 
of such bills to 1)oth the Superintendent and Treasurer of the 
Exchange. 



1 



103 

This list shall be at once posted on the bulletin of the Exchange, 
and no lots of cotton on said list shall thereafter be considered a 
good delivery on contract, except as hereinafter provided. 

Any cotton which has been actually on fire shall be deemed 
unmerchantable and shall in no case be considered a good delivery 
on contract. 

In the case of any cotton which is supposed to have been only 
slightly damaged by smoke or water, or which is contained in 
storage places so damaged, the Inspector-in-Chief shall, at the re- 
quest of the owner of any such lot or lots of cotton, have the cotton 
examined, and, if necessary, put in proper order by picking or 
otherwise, so that the cotton shall be in every way in a sound and 
merchantable condition, and after such examination, provided same 
is approved by the Board of Cotton Examiners, such, cotton shall 
be a good delivery upon contract under the certificate of grade 
previously issued therefor, which shall continue in full force and 
effect. 

The expense of such examination shall in each case be de- 
termined by the Inspector-in-Chief and shall be paid by the owner 
of the cotton. 

The numbers of such lots of cotton as may be so examined 
and approved as aforesaid shall be posted on the bulletin of the 
Exchange. 

CHARGES FOR CERTIFICATE OF GRADE AND FOR 

APPEALS— FEES ON REJECTIONS— DISPOSITION 

OF INSPECTION FUND. 

Rule 28. Sectiox 1. The charge to be paid to the Exchange 
for inspecting, sampling, examining and delivery of samples to the 
Board of Cotton Examiners shall be seventy (70) cents per bale one- 
half of which shall be paid by the receiver of the cotton to the 
party making delivery. The costs of classification and certification 
to be paid to the Government are as set forth in Regulation 12 of 



104 

the Eegulations of the Secretary of Agriculture, issued May 22nd, 
1919, for which see Appendix. 

The bills for charges made by the Exchange shall be rendered 
by the Inspector-in-Chief to the party by whom the inspection is 
ordered, and the Inspector-in-Chief shall furnish a memorandum 
of such bills to both the Superintendent and Treasurer of the 
Exchange. 

Section 2. All bills for inspecting, sampling, examining, de- 
livering samples to the Board of Cotton Examiners and weighing 
cotton shall be rendered weekly and shall become due and payable 
at once, and if any party shall fail to pay the same, or an approxi- 
mate amount, within one week from the date on which the bills 
were rendered, he shall be deemed in default, and shall be notified 
by the Inspector-in-Chief that he is deprived of all rights and 
privileges under the Inspection Eules until such bills are paid. 

Section 3. The Superintendent of the Exchange shall collect 
said charges, returning the same to the Treasurer of the Exchange, 
who shall keep the same separate from the other funds of the Ex- 
change, and the same shall be known as the Cotton Exchange In- 
spection Fund ; provided, however, that whenever the said fund shall 
exceed the sum of ten thousand dollars, then the Board of Directors 
may, in its discretion, apply such excess or any part thereof to such 
purposes of the Exchange as it shall deem necessary and proper, 
and shall restore such excess, or any part thereof, to said fund at 
any and such times as it becomes necessary. 

Section 4. From this fund shall be paid, as a first charge, 
the salaries of the Inspector-in-Chief, the Assistant Inspectors, the 
members and Clerk of the Board of Classers, and the Samplers and 
Weighers, and such necessary expenditures as may be required by 
the Inspector-in-Chief in the management of his office. 



105 
STORAGE AND TEANSFEE OF CEETIFICATED COTTOX. 

EuLE 29. Section 1. Certificated cotton shall be stored only 
in approved places for the storage of cotton, as provided in these 
Eules, and in accordance with Eegulations 7 and 11 of Eegulations 
of the Secretary of Agriculture, issued May 22nd, 1919. (See 
Appendix.) 

Each Pressman or Warehouseman shall notify the Inspector-in- 
Chief of the Exchange of the removal of the cotton from the press 
or warehouse, with the names of the parties receiving the same. 

Section 2. Certificated cotton may be transferred from one 
storage place to another under the direction of the Inspector-in- 
Chief, in accordance with Eegulation 11 of the Eegulations of the 
Secretary of Agriculture. 

EESPONSIBILITY FOE FALSE-PACKED. 

Bule 30. The Cotton Exchange Inspection Fund shall be 
responsible to the last receiver or shipper for any false-packed 
cotton (represented by any press or warehouse receipt which is ac- 
companied by an Inspector's certificate) in the manner prescribed 
in the Spot Rules. 

The party for whom the cotton was inspected shall be respon- 
sible to the Cotton Exchange Inspection Fund, as provided in the 
Spot Rules. 

CLAIMS ON INSPECTION FUND— HOW MADE. 

Rule 31. No recourse shall be had upon the party by whom 
the inspection was first ordered (except for false or fraudulent 
packed cotton), nor upon any party who shall at any time have 
held warehouse receipt and certificate, but the Cotton Exchange 
Inspection Fund shall be liable and responsible for the correctness 
of inspections and examinations made under supervision of the 



106 

Inspector-in-Chief, and the measure of such liability shall be de- 
termined by decision of the Committee on Supervision and De- 
liveries. No claim against said fund shall be entertained unless it 
shall be preferred while the cotton is within the jurisdiction of the 
Cotton Exchange. 

CLAIMS ON INSPECTION FUND— OEDEE OF 
PAYMENT, ETC. 

EuLE 32. Section 1. Claims upon the Cotton Exchange In- 
spection Fund, when allowed, shall be paid by the Treasurer out of 
the fund in the order in which they are presented. 

Section 2. If at any time the said fund shall not be suf- 
ficiently large to pay all the claims upon it, as well as the salaries 
and expenses provided for in Eule 28, the said claims shall be re- 
ceived and filed, and shall be paid in the order of their receipt as 
soon as money available for that purpose shall have been paid into 
said fund. 

Section 3. In no case or event shall the New Orleans Cotton 
Exchange assume or be made liable for any charge, expense or claim 
whatsoever against the Cotton Exchange Inspection Fund. 

INSPECTION BUEEAU MAY BE USED BY THE TEADE IN 
SPOTS AND "TO AEEIVE." 

Eule 33. Members wishing to deliver cotton sold "to arrive," 
or spot sales from samples shown, from depots, landings or else- 
where within the limits of the Port of New Orleans, and desiring 
the co-operation of the Inspection Bureau to make such deliveries, 
may do so upon the following conditions: That the owner shall 
furnish the Inspector-in-Chief of the Cotton Exchange a statement 
of the cotton to be delivered, and the time and place selected for 
delivery, before 4 o'clock p. m. of the day previous to delivery, if 
such delivery is to commence before 12 o'clock noon of the next 



107 

day; and before 10 o'clock a. m. of the day of delivery if delivery 
is to take place after 12 o'clock noon of that day, in order that the 
Inspector-in-Chief may detail an Assistant Inspector to take charge 
of such delivery, to whom licensed parties shall report before com- 
mencing delivery, and who shall weigh (if desired), label and mark 
samples, and weigh and deliver to proper owners all loose cotton 
and pickings. The owner shall also, as a further condition, pay to 
the Inspection Fund fifteen cents per bale and the cost of weighing 
for each and every bale so delivered, which sum shall be collected 
by the Superintendent of the Exchange in the same manner as is 
provided for the collection of charges for inspecting cotton. 

In event of demand for arbitration by the Board of Classers 
on cotton other than deliveries on future contracts, all samples 
and communications must be sent direct to the Secretary of the 
Exchange, and the package of samples must be numbered by the 
Inspector-in-Chief before being sent to the Board of Classers. Names 
of parties arbitrating are not to be divulged. 

Fees for inspecting, sampling, examining, classing and com- 
paring samples, or for either, shall be paid to the Exchange by the 
party ordering the same, irrespective of the interest of opposite 
parties therein; but this shall not void any claim that the party 
so ordering may have against such opposite parties for such fees, 
provided that where both parties to a transaction join in requesting 
an arbitration which may require inspecting, sampling, examining, 
classing or comparing samples, the bill for fees shall be rendered 
to the party whose claim differs most from the final award. 

Eequests for arbitrations must be made in writing, signed by 
both parties thereto, specifying their respective claims. 

WHAT CONSTITUTES A STOEAGE PLACE. FOE COTTON. 

EuLE 34. For purposes of delivery of cotton upon contract 
by warehouse or press receipts, one warehouse or press shall be 
understood to mean a single warehouse ; or, a number of contiguous 



108 

warehouses comprising one system of warehouses under one name 
or management; or, warehouses or systems of warehouses that are 
in juxtaposition to each other, though bearing different names, 
when such warehouses are adjoining and contiguous to each other 
and are all managed or operated by one firm of Warehouseman. 

PENALTY FOR INTERFERENCE WITH INSPECTION 
AND WEIGHING. 

Rule 35. No principal, either by himself or through any 
sampler, clerk or any other agent, shall be allowed to interfere by 
word or deed, directly or indirectly, with the inspection or weigh- 
ing of cotton. In case of such interference, the inspection or 
weighing of the cotton shall be at once stopped, and the party order- 
ing the inspection or weighing shall pay the necessary expenses in- 
curred by the Inspector or Weigher by reason of his order. 

LOST SAMPLES. 

Rule 36. When samples of inspected cotton have become lost 
or destroyed, it shall be the privilege of the owner of the cotton to 
have the same resampled at his own expense, under the direction 
of the Inspector-in-Chief, having first delivered to the Inspector- 
in-Chief the press or warehouse receipt, upon which shall be stamped 
the weight of such redrawn samples, which shall be deducted from 
the weight of the cotton. 

TYPE STANDARDS. 

Rule 37. The present Type Standards, which are the Official 
Cotton Standards of the United States, as established and pro- 
mulgated by the Secretary of Agriculture, pursuant to Section 9 
of the United States Cotton Futures Act, shall govern all transac- 
tions for delivery under these Rules. Should, however, the Secre- 
tary of Agriculture at any time change or replace the present 



109 

standards, under authority conferred upon him by the Congress of 
the United States, then the new standards, when they become 
effective, shall be the basis of settlement of all contracts then ex- 
isting, whether or not the value of such contracts is thereby affected. 

HOLIDAYS— HOW BEOUGHT ABOUT; THEIE EFFECT 
OX NOTICES AjS^D deliveries. 

EuLE 38. Section 1. All contracts falling due on legal holi- 
days, or such holidays as are prescribed by the By-Laws or ordered 
by the Exchange, shall be completed on the preceding business day, 
and transferable notices shall be given on the fifth business day 
previous to the day preceding such holiday. 

Section 2. When the fifth business day previous to the date 
of delivery falls on a holiday, the next preceding business day must 
be substituted for the issue of transferable notices. 

Section 3. N'o day, except a legal holiday, can be declared a 
holiday, and the transaction of business in futures be suspended, 
unless five business days' ofiicial notice shall have been given; pro- 
vided, that the Board of Directors may_, by two-thirds majority of 
its members present and voting, have the power, in their discretion, 
without previous notice, to close the Exchange on such days or 
portions of days as will, in their judgment, serve to promote the 
best interest of the Exchange. 

TRANSACTION OF BUSINESS. 

Hours of Business. 

Rule 39. Section 1. The hours for the opening of transac- 
tions in futures (except those relating to the transfer of notices and 
the delivery of cotton sold upon contract) shall be 9 a. m., and the 
closing thereof shall be 2 p. m., except on Saturda}^ on which day 
the hour for closing shall be 11 a. m. throughout the year. 



110 

The Superintendent or an Assistant shall sound the gong ad- 
jacent to the ring side at the hour designated by Eule for the open- 
ing of trading. He shall also sound the gong by one tap one minute 
before the closing and by two taps or more in rapid succession at 
the closing — the minute interval between taps shall be considered 
as the period for filling orders for execution on the close. 

Section 2. Trading, or offering to trade, in contracts for the 
future delivery of cotton by members of the Exchange, except on 
business days, and within the hours for the transaction of business 
in futures as prescribed by these Eules, is positively prohibited and 
forbidden; and any member violating this provision shall, upon 
complaint being made to the Board of Directors, be fined one hun- 
dred (100) dollars, and for the second offense be suspended or ex- 
pelled, at the discretion of the Board of Directors. 

Section 3. Contracts for the future delivery of cotton, made 
or agreed to be made in other than the duly prescribed hours, shall 
not be noticed in any public report or printed circular issued by 
the Exchange, or in any manner recognized, acknowledged or en- 
forced by the Exchange or any officer thereof. 

Section 4. Dealings, or offering to deal, in "puts" and "calls" 
on the floor of this Exchange is strictly forbidden, and any member 
violating this Eule, for the first offense, shall be censured; for the 
second offense, suspended; and for the third, expelled. The Floor 
Committee and the various officers of the Exchange are charged 
with reporting any violation of this Eule. 

PEIOEITY OF BIDS— LIMIT OF DECIMALS. 

Eule 40. All offers to buy or sell cotton for future delivery, 
on the floor of the Exchange, must be open to the member first 
accepting such offer for the whole or any part of such offer, but an 
acceptance of the whole quantity shall take precedence over any 
acceptance of any part. Any dispute arising from such offer, ex- 



Ill 

cept on call, must be settled by the member making the offer sub- 
mitting the question to the members present; the decision of the 
majority shall govern. 

All offers to buy or sell cotton for future delivery shall be in 
cents and decimal fractions of a cent; and no transactions in con- 
tracts shall be permitted wherein the difference in price shall con- 
sist of a smaller fraction than one one-hundredth (1/100) of one 
cent per pound for each pound of cotton represented by such con- 
tract or contracts, nor shall any additional moneyed consideration 
whatever be allowed. 

All transactions in contracts at split prices are hereby ex- 
pressly prohibited. For any violation of this prohibition, or of any 
part of this Rule, the Floor Committee may punish the offending 
person or persons by imposing a fine of not less than twenty-five 
dollars nor more than fiity dollars, at their discretion. 

EEPORTIXG SALES. 

Rule 41. Section 1. The prices at which all transactions in 
contracts are made for the future delivery of cotton under Rule 1 
shall be reported promptly by the seller to the Collector of the Ex- 
change, giving the exact time and terms and the names of the party 
making the report only. 

Section 2. Any transaction made in any month above the 
price at which such month is offered, or below the price that is bid 
for such month, until what is offered shall be taken, or what is bid 
for shall be supplied, shall not be deemed the market price for such 
month or months, and shall not be reported in the record of transac- 
tions ; nor shall any transaction that is not reported by open outcry 
and across the trading ring be deemed a transaction that can be re- 
ported or recorded in the record of transactions. 

Section 3. Any member who shall be found guilty of report- 
ing false sales shall be expelled. 



112 

DUTY OF BEOKBRS AND PRUSTCIPALS. 

Rule 42. When a member of the Exchange acts as a broker for 
another, it shall be his duty to give his principal a memorandum 
of transactions for that principal's account; and it shall be equally 
the duty of the principal to get such a memorandum from his 
broker. 

REGISTRY OF OFFICES FOR SERVICE OF NOTICE 
AND DELIVERY OF ORDERS. 

Rule 43. Every member of the Exchange shall keep on file 
with the Superintendent of the Exchange a designation of an office 
within half a mile of the Exchange Building, at which all notices 
of any kind whatever, and all orders for cotton may be served upon 
him ; and if any member shall fail to comply with the provisions of 
this Rule the delivery of any notice or order to the Superintendent 
of the Exchange shall be considered a good service upon and de- 
livery to him. 

TRADING BETWEEN MEMBERS OF SAME FIRM. 

Rule 44. No two (2) members of the same firm, nor any 
principal and his power of attorney, shall trade openly at the same 
time on the same month. 

SIGNING OF CONTRACTS OR SLIPS. 

Rule 45. It shall be the duty of the seller, on the day on 
which transactions in contracts take place, or at not later than 
9 a. m. on the following day, to furnish a con'tract or slip, and de- 
liver his own already signed, and the opposite one in blank to the 
buyer; the latter shall then sign his contract, or slip, and return 
it to the seller. 

All slips or contracts, which shall contain a statement of all 



113 

the facts prescribed in Section 4 of the United States Cotton 
Futures Act, must be signed by the member himself or his firm, 
except on the following conditions : That he or they duly execute 
and file with the Superintendent a special power of attorney, in 
such form as may be prescribed by the Board of Directors, authoriz- 
ing signature of his or the firm name to slips or contracts bought 
or sold, said power to be valid and binding upon him, or his firm, 
until formally revoked, and notice of revocation publicly announced 
by being posted on the bulletin of the Exchange. 

All slips shall be in form as follows : 

New Orleans, 

Sold To 

of N"ew Orleans, Louisiana, and 

agreed to deliver them subject to the By-Laws, Eules and conditions 

OF THE 

New Orleans Cotton Exchange, 
and subject to the United States Cotton Futures Act, Section 5, 

bales of cotton delivery at cents 

per pound for Middling. 



of New Orleans, Louisiana. 



New Orleans, 

Bought From 

of New Orleans, Louisiana, and 

agreed to receive from them subject to the By-Laws, Eules and 
conditions 

OP the 

New Orleans Cotton Exchange, 

and subject to the United States Cotton Futures Act, Section 5, 

bales of cotton delivery at cents 

per pound Middling. 



of New Orleans, Louisiana. 



114 

CALLS. 

EuLE 46. There shall be three public calls for the sale and pur- 
chase of cotton contracts at the Exchange rooms on all business days, 
except Saturday, on which day there shall be two calls, to be con- 
ducted by the Superintendent, or, in his absence, by an employee of 
the Exchange to be selected by the President or Vice-President, 
The hours for the calls shall be such as shall be designated from 
time to time by the Board of Directors. 

The call shall be by months, beginning with that current, and 
continued through the list of months so far as there is a desire to 
trade. 

The first offer to sell or buy at a price shall be first accepted 
before subsequent offer at same figures may be placed. Offers to 
sell or buy may be withdrawn (if not accepted) at the option of the 
parties offering. 

Subsequent offers to sell at a lower or buy at a higher shall 
vacate prior offers to sell at a higher or buy at lower prices. A 
transaction shall vacate all previous bids and offers. 

All disputes as to offers, acceptances or withdrawals (whether 
in time or not) shall be decided upon the spot by the ofiScer (or 
person presiding for the time being), subject to an appeal to the 
members present. 

If an appeal is taken, the question shall be put promptly, and 
a majority of the members present and voting upon the disputed 
point shall settle the same finally. 

COMMISSIONS. 

(Effective on and After July 1, 1919.) 

EuLE 47. The following rates of commission are the lowest 
which may be charged on transactions hereinafter named : 

Section 1. When the transaction is made for any person, not 



NEW ORLEANS COTTON EXCHANGE 



()1;1>KI;HIi. TIiM itHr,- (h-l.ilH.,- :n-t, 1:1:^11, .■ni,l until 

.Mlii'm, iioslin- liids. ,'lr., «-ln,-l, i.ivvailra prinr tn the 
,l„|,ti„n „r th.- miK'iHhiiruts >.f Ma.vh 2llth last, viz.: 
OPENING AND CLOSING EXCHANGE ROOMS 
Oi.cains I'lx.'liaiiHc lloclas. daily.... 8:00 A. i[. 



5:00 P. i\[. 



HOURS FOR FUTURE BUSINESS 

Daily, except Saturdays: 

()|x-ning 9:00 A. M. 

Closing 2:00 P. M. 

Saturdays: 

Opening 9:00 A. M. 

Closing" 11:00 A. j\r. 

CALLS 
Daily, except Saturdays: 

First Call 9:00 A. M. 

Second Call 12:00 M. 

Third Call 1::30 P. M, 

Saturdays: 

First Call 9:00 A, M. 

Second Call 10:4,5 A. M. 

POSTING BID PRICES DAILY BY 
SUPERINTENDENT 
Daily, rvre|it Satni'.lavs, 10::M A. M,, and 12:130 
Satnr.lays, 10:011 A. If. 

DEPOSITING MARGINS 
Daily, except Saturdays: 

(hi calls before 12 M., same day by 1:.30 P. I\I. 
Cn calls after 12 o'clock M., before 12 o'clock M., 
of next day. 
On Saturdays: 

On calls befoi'e 10 A, il., before 10:45 A. M, 
On calls after 10 A, M., before 12 M., of following 
(lav. 

H. G. HESTER, 

Secretary. 



AMENDMENT TO RULE 47 OF THE TURE RULES 
OF THE NEW ORLEANS COTTON iXCHANGE. 



(Adopted by the Board of Directors January 22nd, 1921. Posted 
January 22nd^ 1921. Effective on and after January 24th 1921). 



Expunge Rule 47 of the Future Rules as it now reads (page 114, 
Edition of 1920) and substitute therefor the following viz: 

COMMISSIONS. 

Rule 47. The following rates of commission are the lowest 
which may be charged on transactions hereinafter named: 

Section 1. When the transaction is made for any person, not 
a member of the Exchange, but -residing in the United States or 
Canada, the rate shall be as follows: 

Twelve dollars and fifty cents for each and every hundred bales 
bought or sold, making the round transaction (buying and selling) 
twenty-five dollars. This Rule being equally applicable to exten- 
sion or transfer of contracts from one month to another. 

Section 2. When the transaction is made for any person not 
a member of the Exchange, residing outside of the United States 
or Canada, the rate shall be as follows: 

Fifteen dollars for each and every one hundred bales, bought or 



115 



a member of the Exchange, but residing in the United States or 
Canada, the rate shall be as follows: 

Ten dollars for each and every one hundred bales brought or 
sold, when the price is 15c per pound and below, making the round 
transaction (buying and selling) twenty dollars; twelve dollars and 
fifty cents for each and every hundred bales bought or sold, 
when the price is 15.01c per pound and above, making the round 
transaction (buying and selling) twenty-five dollars. This Eule 
being equally applicable to extension or transfer of contrac1;s from 
one month to another. 

Sectiox 2. When the transaction is made for any person not 
a member of the Exchange, residing outside of the United States or 
Canada, the rate shall be as follows : 

Twelve dollars and fifty cents for each and every one hundred 
bales bought or sold, when the price is 15c per pound and below, 
making the round transaction (buying and selling) twenty-five 
dollars ; fifteen dollars for each and every one hundred bales, bought 
or sold, when the price is 15.01c per pound and above, making the 
round transaction (buying and selling) thirty dollars. This Kule 
being equally applicable to extension or transfer of contracts from 
one month to another. 

Sectiox 3. When the transaction is made for a member of the 
Exchange, residing in the United States or Canada, the rate shall 
be as follows : 

Five dollars for each and every one hundred bales bought or 
sold, when the price is 15c per pound and below, making the round 
transaction (bu3'ing and selling) ten dollars; six dollars and twenty- 
five cents for each and every one hundred bales bought or sold, 
when the price is 15.01c per pound and above, making the round 
transaction (buying and selling) twelve dollars and fifty cents. 
This Eule being equally applicable to extension or transfer of con- 
tracts 'from one month to another* 



116 

Section 4. When the transaction is made for a member of 
the Exchange residing outside of the United States or Canada, the 
rate shall be as follows: 

Six dollars and twenty-five cents for each and every one hun- 
dred bales bought or sold, when the price is 15c per pound and 
below, making the round transaction (buying and selling) twelve 
dollars and fifty cents. Seven dollars and fifty cents for each and 
every one hundred bales bought or sold, when the price is 15.01c 
per pound and above, making the round transaction (buying and 
selling) fifteen dollars. This Eule being equally applicable to ex- 
tension or transfer of contracts from one month to another. 

Section 5. The above-mentioned rates shall be, in each case, 
the minimum commission which may be charged by any member 
of the Exchange, and shall be absolutely net and free from all and 
any rebate in any way, shape or manner, nor shall any bonus or 
pro rata percentage of commission be given or allowed to any clerk 
or individual for business procured or sought for any member of 
Ihe Exchange. 

Section G. The penalty for violating or evading, or seeking, 
offering, proposing, promising or agreeing to violate or evade the 
above Eule concerning commission or brokerage, and the rulings 
thereon by the Board of Directors, in any way, shape or manner 
whatsoever, whether by an agreement, arrangement or understand- 
ing, expressed or implied, either directly or indirctly, in person or 
through any firm or co-partnership of which he may be or may 
appear to be a partner, or through any agent or agents, or other- 
wise, shall be, upon conviction: 

(a) For the first offense, suspension for a period of not less 
than six nor more than twelve months, the term of suspension to 
be fixed at the discretion of a majority of the Board of Directors 
present at a meeting thereof. 

(h) For the second offense, expulsion. 



117 

Proceedings for the suspension or expulsion of any member to 
be had as provided under the Constitution of the Exchange. 

]N"oTE. — A round transaction must be considered as dating at 
time of initiation, and not at time of completion. Commissions 
must be applied accordingly. 

EULIl^GS OlST COMMISSION LAW. 

1. A round transaction must be considered as dating at time 
of initiation, and not at time of completion. Commissions must 
be applied accordingly. 

2. No arrangement of any kind is permissible that will in any 
way, manner, shape or form affect the net result to a member as 
his commission for bupng and selling contracts as provided in the 
Commission Eules. Any deviation from this, whether it be in the 
form of an allowance or charge for interest, or in any other shape 
or manner, is a violation of the Eule. 

3. The employment of a member of the Exchange by a firm 
or firms, whether on salary, commission or otherwise, does not en- 
title such firm or firms to the benefits of the rules as members. To 
obtain such benefits, one or more members of such firm must be full 
members of the Exchange. 

4. Any agreement whereby a monthly salary for obtaining 
business, or a variable monthly charge for the use of a wire, is an 
evasion of the Eules. 

5. The commendam partnership of a member of the Exchange 
in a firm not otherwise represented on the Exchange does not entitle 
such firm to have its business done at members' rates. 

6. Xo firm can represent more than one house upon the floor 
of the Exchange for the purpose of securing for such firm the re- 
duced commission. A special partner cannot represent a firm at all. 

7. It is permissible for members of the Exchange to employ 
a member or non-member of the Exchange as an agent, whether 
such agent is resident or non-resident, upon a salar.y, provided : 



118 



fa) That such salary is not on a sliding scale, contingent upon 
the amount of business obtained. 

(h) That the engagement of such clerks or agents is for a 
period of not less than one year. 

(c) That the name of such agent and the terms of the agree- 
ment between the parties shall be set forth in writing to the Com- 
mittee on Commissions, which, after considering both the terms of 
the proposed agreement and the character and reputation of such 
agent, may approve or disapprove the same. If approved, a duly 
signed and authenticated copy of the agreement shall be filed with 
the Superintendent of the Exchange. 

(d) That a certificate of the fact that the full amount of the 
salary or compensation agreed upon has been paid to said agent or 
employe shall be also filed with the Superintendent of the Exchange 
>at the expiration of the time of service, or each year thereof. 

(e) That such agent shall be in the employ of not more than 
-one firm, and that his sole and entire occupation shall consist of 
■such employment, to the exclusion of any other business or occupa- 
tion whatever. 

(f) Members of firms shall be held responsible for any acts of 
ttheir said agents which are in violation of the Commission Eule. 

(g) The provision of this ruling shall apply in all cases where 
a member is employed upon a salary by another member or another 
member's firm for the purpose of soliciting business. 

8. Xo rebate whatever is permissible under the Commission 
Kules. B-rokers doing business for members of the Exchange must 
'charge the rate of commission prescribed for full members. If these 
anembers, in turn, trade for non-members, they must charge the 
non-member the full rates stipulated in the Eules. 

9. Xo waiver of commission is permitted when a trade is 
'executed, whether the result of an error or not. 

10. A corporation engaged in the cotton business and whose 
managing officer is a member of the Exchange is entitled to the 



.^. ---.l< l ^l 



AMENDMENT TO RULING 10 OF THE COMMISSION 

LAW OF THE NEW ORLEANS COTTON 

EXCHANGE. 



(Adopted by the Board of Directors June 10th, 1920; Posted 
June 10th, 1920; Effective on and after June 21st, 1920.) 

Expunge Ruling 10 as it now stands and substitute therefor 
the following, viz : 

Ruling 10. A corporation engaged in the cotton business and 
whose managing officer is a member of the Exchange is entitled to 
the minimum rate of commission on contracts made through him 
for account of such corporation ; provided that both the corporation 
and the managing officer shall assume responsibility therefor; 
provided further that membership in the exchange by a director 
who is not the managing officer of such corporation shall not 
entitle such corporation to the minimum rates of commission on 
its business. In no case can a member represent more than one 
house or corporation. The provisions of this rule shall not apply 
to corporations or stock companies organized mainly for the pur- 
pose of engaging in the solicitation of future contract business, 
or whose principal business is the solicitation of future contract 
business. 



119 

minimum rate of commission on contracts made through him for 
account of such corporation; provided, that membership in the 
Exchange by a director who is not the managing officer of such 
corporation shall not entitle said corporation to the minimum rates 
of commission. In no case, however, can a member represent more 
than one house or corporation. 

11. The Eule permitting a firm of which only one partner is 
a member of the Exchange to have their business done at the 
minimum rate of commmission applies only to regular articled 
firms doing the cotton business, and not a mere association of two 
or more parties for purposes of speculation. Such associations 
should pay the maximum rate of commission. 

12. The manager of a branch office established by a firm, mem- 
bers of the New Orleans Cotton Exchange, and having no interest 
in the firm, cannot receive a share of the profits of the branch office 
as compensation for the management thereof. 

13. The full maximum commission must be charged in the 
case of delivery of cotton on a contract. The delivery being con- 
sidered as constituting a round transaction. 

14. The full rate of commission must be charged in a case 
where a non-member gives an order for a full member and neglects 
to instruct the broker to carry the contract in the member's name. 

15. It is not necessary that a commission should be charged 
to a person for whom contracts are being carried and who disposes 
of his business to another. Such transfer not being considered in 
the nature of an ordinary purchase or sale of contracts in the open 
market. 

16. The constituent of a suspended firm is not liable to the 
said firm for one-half commission for contracts in his name with 
them, when such contracts are replaced. The suspended firm having 
failed to fulfill its obligations to its constituents. 

17. If the partners in a firm doing business in New Orleans 
and some other place or places are the same and their interest 



120 

identical in both concerns, but for the sake of convenience different 
titles are used for the New Orleans and other houses, all of the 
concerns are entitled to have their business transacted at the min- 
imum rate of commission. 

18. It is not permissible for a broker having contracts in the 
name of a firm outside of New Orleans and contracts in the name 
of the agent representing said firm in New Orleans to offset the 
firm's contracts against the agent's contracts, or vice versa, and 
charging but one commission, unless both contracts are made in the 
firm's name and only when they constitute a round transaction. 

19. The holding of a membership by a paid employee of a 
firm cannot be extended so as to give a concern of which he may 
become a member the advantage of Exchange membership to that 
concern. No membership can be used in a dual capacity. 

20. It is not permissible for a firm or a private wire house to 
pay an operator's salary at an interior point. 

21. Commissions must be charged on all transactions, whether 
made in error or otherwise, regardless of whether losses or gains do 
or d(j not accrue. 

22. There is no objection to one member paying to another 
member a fixed monthly rental for the part use of a wire, such 
rental to be a reasonable and adequate sum, the particulars of the 
same and the price and time agreed upon to be placed on record 
with the Superintendent of the Exchange. If, for any reason, it 
should become necessary or advisable to discontinue the agreement, 
both parties to the agreement shall make application to the Com- 
mittee on Commissions^ which, after full investigation, may con- 
sent to its cancellation. A so-called "fixed toll" per 100 bales, even 
though in lieu of telegraphic charges or rental, would be in viola- 
tion of the spirit of the Commission Law. 

Members may, by the consent and approval of the Committee 
on Commissions, establish branch offices. Such offices must be in 
charge of either a partner, or of a manager or clerk acceptable to 



No. 5. 

AMENDMENT TO RULING 25 OF THE COMMISSION 

LAW OF THE NEW ORLEANS COTTON 

EXCHANGE. 



(x^dopted by the Board of Directors June lOth, 1920; Posted 
June 10th, 1920; Effective on and after June 21st, 1920.) 

Expunge Euling 25 as it now stands and substitute therefor 
the following, viz: 

Euling 25. It is necessary for a member of the Exchange 
soliciting business for another member or firm represented by 
membership, in order to obtain a rebate on all non-member's 
business, that the orders be carried in his name and on his full and 
unlimited responsibility, and no rebate is permissible on orders 
solicited- by or through limited liability corporations or stock com- 
panies, Avhether the stockholders thereof are members or non- 
members. 

This ruling applies to all confirmation slips as well as account 
sales, which must be made in the name of the member solicitor for 
account of said solicitor's customers. Any deviation from these 
requirements will be considered a violation of the Commission Eule. 



121 

said Committee. The member or firm establishing a branch office 
shall register it with the Superintendent of the Exchange, and shall 
be directly responsible for the conduct of its business. 

The managing clerk and all other employees must be paid fixed 
salaries, not varying with the business. 

Members leasing private wires must file with the Superin- 
tendent of the Exchange a list of all places reached by said private 
wires, and also a list of all branch offices, agents or correspondents 
at each point on said wire, same to be subject to the approval of 
the Committee on Commissions. 

23. It is not permissible under the Commission Law for a 
firm operating private wires to transmit or allow to be transmitted 
without charge over its wires telegrams from one party to another 
referring directly or indirectly to any business in cotton or to any- 
thing bearing on the cotton market, except where one of the parties 
sending or receiving the telegram leases the private wire, nor is it 
permissible for a future brokerage firm to pay for the transmission 
over the public wires of telegrams or telephone messages from one 
party to another referring directly or indirectly to any cotton busi- 
ness or to anything bearing on the cotton market. 

24. It is not permissible under the Eules for a firm operating 
a private wire system to pay expense of a telephone line running 
into the country from a correspondent's office to various points, for 
use of customers. 

25. It is necessary for a member of the Exchange soliciting 
business for another member or firm represented by membership, 
in order to obtain a rebate on all non-member business, that the 
orders be carried in hie name and on his responsibility. 

This ruling applies to all confirmation slips as well as account 
sales, which must be made in the name of the member solicitor 
for account of said solicitor's customers. Any deviation from these 
requirements will be considered a violation of the Commission Eule. 

26. It is entirely permissible for an employer to increase the 



122 

salary of an employee, provided such increase is on a yearly basis, 
as required by the Eules. 

27. No salaried employee is entitled to receive rebate com- 
missions on any business that he may control for the firm who em- 
ploys him. 

28. It is not permissible for a private wire house to pay 
salaries of operators at relay stations where such stations are 
occupied also by another firm, unless the office is operated by and 
at the expense of the house owning the private wire through a 
salaried employee or resident partner of such private wire house. 
If the interior correspondent of a wire house is a member of the 
Exchange and participates in the commissions derived from the 
business, he should defray all expenses of operators employed at his 
office in the interior. 

29. It is contrary to the Rules for a firm to employ a member 
at a stipulated salary for a period of one year with the provision 
that the member guarantee the firm business in excess of his salary 
or to make good the difference should he fail to do so. 

30. It is permissible for a broker to bear the cost of telegrams 
or telephone messages to or from a customer when such message 
pertains to an order for the future delivery of cotton. 

31. It would be a violation of the Commission Eule to allow 
interest to a customer on money deposited on margins. 

32. An honorary member of the Exchange is entitled to have 
his future business transacted at members' rates. 

33. On contracts executed for a firm which subsequently goes 
into liquidation and transfers contracts to another firm, not mem- 
bers of the Exchange at the time of the transfer, a member's rate 
of commission should be charged on the end of the contract made 
while the firm were members and on the other half of the contract 
the non-member's rate should apply. 

34. The acceptance of the services of any person regularly 
employed by any telegraph company, or having any other occupa- 



123 

tion, for a compensation of whatever nature, is in violation of 
Ruling 7 of the Commission Law. 

The soliciting of orders by any one on a salary or other re- 
muneration constitutes that person the agent of individual or firm 
for whom business is solicited. 

This employment brings the solicitor within the terms of 
Ruling 7, which permits a member or firm to employ a party to 
solicit business, provided the engagement is for a period of not less 
than one year, that the compensation be a fixed yearly one, and 
that the party be in the employ of not more than one firm, and that 
his sole and entire occupation consists of such employment to the 
exclusion of any other business or occupation whatever. 

35. It is permissible for members to bear the cost of C. N. D. 
Service in any town or towns throughout the cotton section or else- 
where, provided said C. N. D. Service is not to be used in connec- 
tion with the operation of a Cotton Exchange. 

36. It is not permissible, as a broker, to share any portion of 
the expense involved in the operation of Cotton Exchanges at 
interior points, nor can any member of the New Orleans Cotton 
Exchange, who is a broker, join or become a member or contributor 
to any Exchange or commercial body in the United States that is 
not regularly incorporated under the laws of the State in which it 
is located. 

37. No paid official or employee of any Exchange or Board of 
Trade can act as a representative or agent of a broker for the pur- 
pose of securing business. 

38. It is not permissible, unless it is for a regularly salaried 
employee, for any member to contribute towards securing use of, or 
carrying of a share or shares of Exchange stock for another member 
or applicant for membership, at less than the regular market rate 
therefor, such contributions being in the light of a rebate. 

39. It is permissible under the Commission Law for a member 
to contract with a non-broker as agent at a stipulated yearly salary. 



124 

coupled with a condition that losses arising from business secured 
by said agent may be shared by both parties to the contract. Pro- 
vided, that this ruling shall not be considered as in contravention 
of paragraph (a) of Ruling 7. 

EINGS AND MARGINS. 

Caxcelling Contracts and Ring Settlements. 

Rule 48. Section 1. All contracts for the future delivery of 
cotton shall be binding upon members, and of full force and effect 
until the quantity and qualities of cotton specified in such contracts 
shall have been delivered, and the price specified in said contracts, 
shall have been paid. Nor shall any contract be entered into with 
any stipulation or understanding between parties, at the time of 
making such contract, that the terms of said contract, as specified 
in Rule 1, are not to be fulfilled, and the cotton received and de- 
livered in accordance with said Rule. Provided, however, that any 
party holding a contract against another, corresponding in all 
respects, except as to price, with one held by the other party against 
him, may close or cancel both by giving notice in writing to the 
opposite party, at any time before notice of delivery. 

Section 2. All "ring" settlements shall be made at the bid 
prices posted by the Superintendent at the close of business on the 
last business day preceding that on which the ring is made; and 
bills on "rings" shall be rendered by 12 o'clock noon of the day 
following that on which such ring or settlement shall have been 
made, and must be paid by 2 p. m. of the day on which they are 
rendered, except on Saturdays, when they must be rendered by 
10:30" a. m., and paid before 11:30 a. m. ; provided, that bills for 
direct settlements shall be rendered by 12 o'clock noon of the day 
after that on which such settlements shall have been made and must 
be paid by 2 p. m. of the day on which they are rendered, except 
Saturdays, when they must be rendered by 10 :30 a. m., and pai3 




NEW ORLEANS COTTON EXCHANGE 

New Orleans, October 26, 1920. 

Under resolution of tlie Board of Directors adopted 
this day, it was 

ORDERED, That after October 31st, 1920, and until 
further notice, there shall be a return to the hours for 
trading, posting bids, etc., which prevailed prior to the 
adoption of the amendments of March 20th last, viz.: 

OPENING AND CLOSING EXCHANGE ROOMS 

Opening Exchange Rooms, daily. ... 8:00 A. M. 

Closing Exchange Rooms, daily, ex- 
cept Saturdays 5 :00 P. M. 

Closing Exchange Rooms on Satur- 
days 3:00 P. M. 

HOURS FOR FUTURE BUSINESS 

Daily, except Saturdays: 

Opening 9:00 A. AI. 

Closing 2:00 P. M. 

Saturdays : 

Opening 9:00 A. M. 

Closing. 11:00 A. M. 

CALLS 

Daily, except Saturdays: 

First Call 9:00 A. M. 

Second Call 12:00 M. 

Third Call 1 :30 P. M. 

Saturdays: 

First Call 9:00 A. M. 



Y ^ 




^ -^ 



Fold-out Plac 



This fold-out is being d: 
will be inserted at a : 



NEW ORLEANS COTTON EXCHANGE 

March 20th, 1920. 

At a Meeting of the Board of Directors held this 
day, it was 

RESOLVED, That on and after Monday, March 29th, 
1920, the following 

SUMMER HOURS 

be and are hereby adopted, viz.: 

Opening Exchange rooms daily 7 :30 A. M. 

Closing Exchange rooms March 29th 
to Sept. 1st, 1920, daily except 
Saturday 3:00 P. M. 

Closing of Exchange Saturday, March 

29th to September 1st 2:00 P. M. 

Closing Exchange on and after Sep- 
tember 1st, 1920, daily except 
Saturdays 5:00 P. M. 

Closing Exchange after September 

1st on Saturdays 3:00 P. M. 

HOURS FOR FUTURE BUSINESS 

From March 29th to October 31st, 1920, both inclusive 

Daily, except Saturdays: 

Opening 8:00 A. M. 

Closing 1:00 P. M. 

Saturdays: 

Opening 8:00 A. M. 

Closing 10:00 A. M. 

CALLS 

Daily, except Saturdays: 

First Call 8:00 A. M. 

Second Call 11:00 A. M. 

Third Call 12:30 P. M. 

Saturdays: 

First Call 8:00 A. M. 

Second Call 9:45 A. M. 



At the same time and place, it was 

RESOLVED, That the Rules in relation to posting 
of Bid Prices and depositing Margins be amended in 
-so far as hours are concerned to conform with the fol- 
lowing, the said amendments to be effective only from 
March 29th to October 31st, 1920, both dates inclusive, 
viz.: 

POSTING BID PRICES DAILY BY 

SUPERINTENDENT 

From March 29th to October 31st. 

Daily, except Saturday, 9:30 A. M., and 11:30 A. M. 
Saturday 9:00 A.M. 

DEPOSITING MARGINS 
From March 29th to October 31st. 

Daily, except Saturday: 

On calls before 11 o'clock. Same day by 12:30 

P. M. 
On calls after 11 o'clock. Before 11 A. M., of 

next day. 

DEPOSITING MARGINS 
From March 29th to October 31st. 

On Saturdays: 

On calls before 9 A. M. Before 9:30 A. M. 
On calls after 9 A. M. Before 11 A. M., of fol- 
lowing day. 

ORIGINAL MARGINS 

From March 29th to October 31st. 

Party calling may demand that full amount be de- 
posited within one hour of the receipt of call. 

H. G. HESTER, 

Secretary. 



NEW ORLEANS COTTON EXCHANGE. 

At a meeting of the Board of Directors held April 6th, 1921, 
it was 

RESOLVED, That on and after Monday, April 25th, 1921, 
the following 

SUMMER HOURS 

be and are hereby adopted, viz : 

Opening Exchange rooms daily 7 :30 A. M. 

Closing Exchange rooms April 25th to Sep- 
tember 24th, 1921, daily except Saturday 3:00 P. M. 

Closing of Exchange on Saturdays, from April 

25th to September 1st 2 :00 P. M. 

Closing Exchange on and after September 1st, 

1921. dailv exceut Satnrdav«. ?-nn P ^r 



I'ii'rfi^iVriiMTiil^^fmf-'If^i'ft' 



NEW OKLEANS COTTON EXCHANGE. 

At a mcoting of tlie Board of Directors held April 6th, li)21, 

RESOLVED, That on and after Monda.y, April 25th, 1921, 
the following 

SUMMER HOURS 
he and are' hereby adopted, viz: 

Opening Exchange rooms daily 7: 



HOURS FOR FUTURE BUSINESS. 
April 25th to September 24th, 1921, both inclusive. 
Dnily. except Saturdays: 

Opening 8 :00 A. .M. 

Closing 1 :00 P. II. 

Satnrday.s: 

Opening 8:00 A. JI. 

Clo.sing 10 :00 A. }I. 



CALLS. 



. 8:00 


A 


11. 


. 11:00 


A 


.\1. 


. 12:30 


P 


J[. 


8:00 


A 


M. 


9:45 


A 


M. 


.osting 


of 


Bid 



POSTING BID PRICES DAILY BY SUPERINTENDENT. 
From April 25th to September 24th. 
Doily, except Saturdays. 9:30 A. M., and 11:30 A. M. 
Saturdays, 9 :00 A. M. 

DEPOSITING MARGINS. 
From April 25th to September 24th. 
Daily. c.K.-ept Satui'diiy: 

On ealls ln<fore 11 ..•rli.,-k. s:im,> .l:iy hy ]2::!0 P. II. 
On calls after 11 ,>-,l.„-k. I„f,„v 11 A. M. of next day. 
DEPOSITING MARGINS. 
From April 26th to September 24th. 
On Saturday; 

On calls before il A. JL, l),.fore 9 ::!n A. SI. 
On calls after 9 A. M., before 11 A. JI.. of following day. 
ORIGINAL MARGINS. 
From April 25th to September 24th. 
Party calling may demand that full amount he deposited 



125 

before 11 :30 a. m., uudei- a penalty of 6/lOOc per pound as 
liquidated damages. The party making a ring shall notify all the 
parties thereto, who shall be compelled to accept the same ; he shall 
get their initials in acknowledgment, leaving with each a copy there- 
of. If the "ring" is not complete he shall, on the same day, notify 
all the parties thereto. The contract of the earliest date shall in 
all cases be the one considered settled. 

Sectiox 3. Any party who, at the request of another, trans- 
fers a contract, or substitutes another for one held by him, shall 
receive ten (10) cents a bale as compensation for making the 
change, but this transfer fee shall not be paid by any member who, 
in the legitimate discharge of his duty as a broker, tenders the name 
of his principal before the close of the Exchange hours on the day 
on which the transaction is made. 

Sectiox i. Margins may be called after a "ring" is formed, 
but only to the extent of the differences owed on said "ring'^ to the 
bid prices fixed for said ring. A "ring" is considered a basis of 
settlement and, as such, is not affected by fluctuations subsequent 
to the formation of said "ring." 

Sectiox 5. All brokerages for making settlements, transfers 
and changes in contracts shall be paid by the party employing the 
broker. 

Sectiox' 6. \Yhere a transfer of contract of a "ring" has been 
verbally agreed upon by all parties, and all have been notified, it 
shall be in force from the time of the acknowledgment, and cannot 
be broken by the failure of any party thereto. 

OEIGIXAL MAEGIXS. 

EuLE 49. Sectiox 1. Either party to a contract for the future 
delivery of cotton shall have the right to call an original margin 
of from one to five dollars per bale at the time of signing the regular 
contract, or at any time prior thereto, and may also demand that 



126 

the full amount demanded shall, within one hour after receipt of 
such demand, be deposited with the Superintendent of the Ex- 
change in certified checks. The part}^ calling must put up and de- 
posit an amount equal to that called by him. Margins may be 
called, and shall be put up on verbal contracts, and on a slip as 
memorandum of contract in all respects as is herein prescribed in 
case of a regular contract. Provided, that all demands for original 
margins on verbal contracts or slips must be made within twenty- 
four (24) hours after the transaction upon which such original 
margins are called. 

MAEGI^S OX DIFFEEENCES. 

Rule 50. Section 1. When a contract provides for demand- 
ing a margin, notice in writing, requiring same, must be de- 
posited at the office of the party from whom the margin is called; 
and if the office of the party is unknown or closed, it shall be de- 
livered to the Superintendent of the Exchange, who ^hall endorse 
thereon the time of its receipt and promptly post the same on the 
bulletin of the Exchange. When such a notice is given before 12 
o'clock m., the margin must be deposited by 1 :30 o'clock p. m. of 
the same day, except on days when the closing hour of business is 
prior to 12 m. ; on such day« margins called before 10 a. m. must be 
deposited before 10 :-15 a. m. ; and if called after 10 a. m., must be 
deposited before 12 m. of the following day. 

When notice is given after 12 o'clock m., the margin must be 
deposited before 12 m. of the next day, except in cases of calls for 
one dollar per bale original margin, as provided for in Rule 49, 
which must always be deposited within one hour from the receipt 
of the demand therefor. The Superintendent of the Exchange 
shall, every day, at 10 :30 o'clock a. m., and 12 :30 o'clock p. m., 
post on the bulletin of the Exchange the bidding price for each 
month dealt in, and if there are no bids, the last sale reported. 
These prices shall govern all calls for margins. All margins called 



127 

before 12 o'clock m. shall be put up at the prices posted at 12 :30 
o'clock p. m., on the same day, except on days when the closing 
hour of business is prior to 12 m. ; on such days margins shall be 
put up at the prices posted at 10 o'clock a. m., and all margins 
called after 12 o'clock m. shall be put up at the prices posted at 
10:30 o'clock a. m. of the following business day. If any party 
fails to deposit any margin called for in accordance with the con- 
tract and Rule 49, the other party may close the contract at hi& 
option by giving written notice of his decision to do so. The party 
in default shall then account to the other party for the difference 
between the contract price and the average quotations of the Cotton 
Exchange for that day, for like deliveries, with an allowance against 
the defaulting party of 2 5/1 00c per pound. 

Section 2. The passing of any transferable notice shall not 
prevent the calling of margins on contracts any time before the day 
of delivery. 

Section 3. The Board of Directors shall select such bank or 
banks in good standing, and members of the New Orleans Clearing 
House, to act as depositories for margins, as they shall deem proper. 

BANKS FOE DEPOSIT— MAEGIN CEETIFICATES. 
SETTLEMENTS— EISKS. 

EuLE 51. Section 1. When margins are called for variations 
in the market, certified checks must be drawn to order of any one 
of the banks selected by the Board of Directors; said bank to be 
designated by the party calling. 

Section 2. Certified checks for original margins and margins 
called as above must be sent to the Superintendent of the New 
Orleans Cotton Exchange, who shall deposit them and get a "cer- 
tificate of deposit," made payable on the order of the Superin- 
tendent of the New Orleans Cotton Exchange and to the order of 
the buyer and seller. As soon as the Superintendent has received 



128 

the certificate he shall send it to the party making the deposit, and 
an abstract of same to the party calling the margin. In settlement, 
the Superintendent shall ascertain the amount due each of the 
parties at interest, and shall endorse the amount due on the cer- 
tificate over his own signature, as instructed by both parties. In case 
the two parties do not agree as to the amount due each on such 
certificate, either of them may refer the matter to the Arbitration 
Committee for decision, with right of either party to appeal from 
their decision to the Appeal Committee. On the decision of the 
Arbitration Committee, if not appealed from, or that of the Ap- 
peal Committee, if appealed to, the Superintendent shall promptly 
endorse to each party the amount each shall be entitled to by such 
decision. Original margins are at the risk of the party depositing 
them. 

SECTioisr 3. Margins deposited for variations in the market 
are at the risk of the party to whom the money is actually due each 
day. In case of failure of any bank or trust company in which 
margins have been deposited, it shall be the loss of the party or 
parties to whom it may be found due, taking the average price of 
like deliveries on the day such bank or trust company failed as a 
basis of settlement. 

STANDING COMMITTEES. 

Titles of Committees. 

EuLE 52. The Board of Directors shall appoint the following 
Standing Committees, in addition to those provided for in Eule 5 
of the Future Rules, viz.: A Future Committee, a Supervisory 
Committee, a Committee on Commissions; also such other Com- 
mittees as the requirements of the business may demand. 

DUTIES OF COMMITTEES. 

Rule 53. The Future Committee shall be composed of nine 
(9) members, and its duty shdl be to supervise the transactions of 



129 

the business in contracts for the future delivery of cotton, and to 
examine into all infractions of the Kules, except those relating to 
failures. 

Where there are evident infractions in posting transactions in 
future contracts, the Committe, or three members thereof, shall have 
the right to order immediate cancellation on the board of such 
transactions. 

The Supervisory Committee shall be composed of five (5) mem- 
bers, three (3) of whom shall constitute a quorum for business. 
Its duties shall be to investigate all failures, and to examine into 
all infractions of the Kules relating thereto. 

The composition and duties of the Committee on Commissions 
shall be as prescribed in Eule 13 of the General Eules. 

ATTOENEYS. 
Form of Power of Attorney. 

Eule 54. Any person transacting business in contracts, as the 
representative of any house or firm in which he is not an advertised 
partner, must file with the Superintendent of the Exchange a duly 
executed power of attorney in the following form, viz. : 



United States of America^ 

State of Louisiana, Parish of Orleans, 

City of New Orleans. 



I 



Know All Men by These Presents: 
That of do 

hereby constitute and appoint, and by these presents do make, con- 
stitute and appoint of 

true and lawful attorney to represent .in the 

buying and selling of contracts for the future delivery of cotton, 

for and in stead, to perform all 

necessary acts as hereinbefore stated, in accordance with the By- 
Laws and Eules of the Exchange, which might legally 



130 

do; hereby ratifying and confirming in all respects the act or acts 

of said attorney as fully as could do 

if personally present, and this power shall remain 

in full force and effect until after the expiration of . twenty-four 
hours from the date of the posting upon the bulletin board of the 
Exchange room, by the Superintendent thereof, a notice of the re- 
vocation of the same. 

All transactions in futures made under the "call" by a member 
holding a power of attorney shall be binding upon his principal or 
principals ; and all transactions in contracts made by such member 
not under the "call" shall also be binding upon his principal or 
principals, unless it shall be distinctly stated and agreed upon in 
writing by an exchange of slips at that time, that the transaction 
is for his own account. Provided, that no such power of attorney 
shall do any business for his own account unless he is a full member 
of the Exchange. 

FAILURE TO MEET LIABILITIES AND OBLIGATIONS 
AT MATURITY. 

Voluntary Notices of Failure. 

Rule 55. Any member of the Exchange who shall find him- 
self unable to meet his liabilities to, or obligations with, other 
members at maturity shall immediately communicate to the Ex- 
change the fact of his inability so to do, by means of a letter ad- 
dressed to the Superintendent, by whom it shall be at once posted 
on the bulletin of the Exchange, where it shall remain for five (5) 
days. 

The posting of such a letter shall be considered as due and 
sufficient notice to all the members of the Exchange of the facts 
•therein recited, and any contract for future delivery with the failed 
member or firm shall be closed in the open market not later than 
three business hours after such posting by the other party thereto,. 



131 

who shall promptly notify the failed member or firm of the time and 
price at which the contract was closed, which price shall be the 
basis of settlement between the parties to the contract. Any 
member of the Exchange holding a claim or contract against a 
member who has given notice of his failure may demand an in- 
vestigation of the affairs of said alleged failed member by the 
Supervisory Committee, and if said Committee shall be of opinion 
and shall report to the Board of Directors that said member is able 
to meet and pay all his contracts and liabilities at maturity, he shall 
be debarred from the privilege of settlement under the provisions 
of this Rule. 

FORCED NOTICES OF FAILUEE— DUTIES OF 
MEMBERS. 

Rule 56. If any member of the Exchange shall hold a claim 
or contract, either as principal or broker, against any other member 
who has not already been posted as failed, for or arising from the 
purchase or sale of cotton for future delivery, which is not settled 
or liquidated at maturity, he shall record the fact of the failure 
of said other member to meet his liabilities, in a book kept by the 
Superintendent of the Exchange, entitled "Record of Failures,'^ and 
if he shall omit or neglect so to do within ten (10) days after such 
failure occurs, he may, upon the recommendation of the Super- 
visory Committee, in the discretion of the Board of Directors, be 
suspended from the rights and privileges of membership in the 
Exchange for a period not exceeding one year. No claim or con- 
tract shall be considered settled or liquidated for the purposes of 
this Rule except by cash payment or property actually delivered. 
As soon as the record provided for in this Rule is made in the 
"Record of Failures," the Superintendent shall deliver a copy there- 
of to the Supervisory Committee, who shall promptly examine the. 
proof of the charge, and if, in their opinion, the failure to meet 
obligations is proven, they shall instruct the Superintendent to 



132 

promptly post upon the bulletin of the Exchange a notice of such 
failure, and to keep it so posted for five (5) days. 

KECOED OF CLAIMS AGAINST FAILED MEMBEES. 

EuLE 57. Any member of the Exchange who holds a claim, 
either as principal or broker, against any member of whose failure 
a notice has been posted, either by his own direction or by order 
of the Supervisory Committee, which claim has arisen on account 
of the purchase or sale of cotton for future delivery, shall record 
such claim in the "Eecord of Failures" within thirty (30) days 
after the posting of said notice, and if he fails so to do he shall 
forfeit all right under such claim to participation in the proceeds 
of the sale of the share of stock in the Exchange of said failed 
member. 

EIGHTS OF FAILED MEMBEES— SUPEEINTENDENT'S 

DUTIES. 

EuLE 58. The Superintendent of the Exchange shall, within 
three (3) days after the expiration of thirty (30) days mentioned 
in the last preceding Eule, serve upon the member of whose failure 
a notice has been posted, or upon the legal representative of a de- 
ceased member, a copy of all the claims against him which have 
been recorded in the "Eecord of Failures," in accordance with the 
requirements of the last preceding Eule. If the said member, or 
legal representative, or any of the creditors, shall dispute the cor- 
rectness of any claim so recorded, the member, or legal representa- 
tive, so objecting, shall, within three (3) days after the expiration 
of the aforesaid three (3) days, file with the Superintendent a 
written notice specifying the grounds of his objection thereto, and 
the Superintendent shall, within three days after he receives such 
notice, deliver the same, together with a copy of the claim which 
it disputes, to the Arbitration Committee. 



133 

ARBITEATIONS ON CLAIMS OF FAILED MEMBEES. 

EuLE 59. Upon receiving such claim and the objection there- 
to, the Arbitration Committee shall proceed to consider the same, 
and shall hear such testimony as may be offered by either the 
claimant or the objector, which shall, in the judgment of the Com- 
mittee, be material and pertinent, and shall, within ten (10) days 
after such claim and objection is submitted to them, make, sign 
and file with the Superintendent of the Exchange an award thereon 
in writing. The Superintendent shall immediately record such 
award in the "Book of Decisions of the Arbitration Committee/^ 
and shall, at the same time, send by special messenger a notice of 
the recording of said award to each party interested therein, which 
notice shall specify the date and time of such recording, and in 
default of an appeal therefrom the said award shall be final and 
binding upon all the parties interested therein. 

APPEALS— LIMIT OF TIME FOE PAYMENT BY 
FAILED MEMBEES. 

EuLB 60. Within three (3) days after the award of the Ar- 
bitration Committe shall be filed, or, if there be an appeal from 
such award, within three (3) days after the decision thereon by 
the Appeal Committe shall be filed, or if there shall have been no 
objection made to any claim within three (3) days after the time 
allowed for filing such objections, the Superintendent shall serve 
upon the member of whose failure a notice has been posted, or upon 
the legal representative of a member whose death has been posted, 
a list of such claims as have been recorded, and to which no objec- 
tion has been made, and a notice of the decision of the Arbitration 
Committee, or of the Appeal Committee (as the case may be) upon 
such claims as have been objected to, and if said member shall not 
within five (5) days pay such awards and claims the Board of 
Directors shall declare his membership at an end. 



134 

SCHEDULE OF FAILED MEMBERS. 
Duty of Supervisory Committee. 

Rule 61. When the failure of any member of the Exchange 
has been posted, either by his own act or by direction of the Super- 
visory Committee, he shall forfeit all the rights and privileges of 
membership, except such as relate to arbitrations on claims resulting 
from business transactions with members entered into before the 
posting of such notice of his failure. 

The said member shall, within ten days after posting such 
notice of his failure, send to the Supervisory Committee a state- 
ment of his affairs and produce the books of account to them for 
full and free examination, which examination may, in the discretion 
of the Committee, be made by and with the assistance of an expert 
accountant, the cost of whose services shall be charged to the estate 
of said member. 

If any member who has been so posted as failed shall omit to 
send to the Supervisory Committee within said ten (10) days the 
statement required by this Rule, or if said Committee, on an exami- 
nation, shall be of opinion that the said member has conducted his 
business in a reckless and unbusinesslike manner, they shall so re- 
port to the Board of Directors, who may, by a two-thirds vote, de- 
clare such failed member disqualified for reinstatement. 

REIN^STATEMENT OF FAILED MEMBERS. 

Rule 62. Any member of the Exchange who, finding himself 
unable to meet his liabilities and obligations at maturity, shall cause 
notice thereof to be given to the members of the Exchange, as pro- 
vided in Rule 55, and shall have made honorable settlement with 
his creditors, or shall have offered to pay them pro rata to the full 
extent of his ability^ including the market value of his share of 
stock, may, within one year from the date of his failure, apply for 
reinstatement through the Supervisory Committee, who shall, with- 



1^ 

in one week from the receipt thereof, report to the Board of Di- 
rectors such application, together with the opinion of said Com- 
mittee thereon, and the Board of Directors may, at any meeting 
subsequent to that at which said report is received, by a vote of two- 
thirds (2/3) of the members of the Board of Directors present and 
voting, reinstate such member upon his obtaining a new share of 
stock; but this Rule shall not be construed to authorize the re- 
instatement of any member of whose failure a notice shall have been 
posted by order of the Supervisory Committee. 

AVERAGE QUOTATIONS. 

EuLE 63. In making the daily average quotations the Super- 
intendent shall consider each report of prices for each month as a 
unit, dividing the aggregate by the number of reports made for such 
month. The results shall constitute the average quotations of that 
day for time contracts. When no sales for any month are reported 
at the Exchange, the Committe on Future Quotations shall fix the 
quotations for such month if required. 

DECEASED MEMBERS. 

Contracts With Deceased Members. 

Rule 64. It shall be the duty of the Superintendent of the 
Exchange, as soon as he shall learn of the death of any member, to 
post a notice of such death upon the bulletin of the Exchange, 
which notice shall be due and sufficient notice to all the members 
of the Exchange of the facts therein stated. 

Any contract for the future delivery of cotton, in which the 
member whose death is so announced shall have been the sole seller 
or buyer, or the only member of the Exchange in his firm, shall be 
closed in the open market not later than three business hours after 
such announcement by the other party thereto, who shall promptly 



136 

notify the estate or firm of the deceased member of the time and 
price at which the contract was closed, which price shall be the basis 
of settlement between the parties to the contract. 

It shall be the duty of every member of the Exchange, who shall 
hold a contract for the future delivery or receipt of cotton in which 
a member, of whose death a notice is posted as hereinbefore provided, 
shall have been sole seller or buyer, to present to the Superintendent 
of the Exchange, within ten (10) days after the posting of such 
notice, a statement of all such contracts, and any member holding 
any such contracts, and who shall fail to present such statement, 
may, in the discretion of the Board of Directors, be suspended from 
all the rights and privileges of membership, for any term not ex- 
ceeding one. year. 



APPENDIX 



REGULATIONS 

OF THE SECRETAEY OF AGRICULTURE 
UNDER SECTION 5 OF THE 

United States Cotton Futures Act 
As Amended March 4, 19 19 

ISSUED MAY 22, 1919 



141 



BRIEF 

OF 

Regulations of the Secretary of 
Agriculture 

IN EEFERENCE TO 

Section 5 Contracts 

ISSUED MAY 22, 1919 



Eegulation 1. 
definitions of terms used in regulations. 

Kegulation 2. 

Sec. 1. Contracts and details of deliveries must accord with Sec- 
tion 5 of Act as amended. 

Sec. 2. Eegulations do not relieve parties of their obligations nor 
deprive them of their rights under Act. 

Sec. 3. Amendments to regulations will, unless otherwise stated, 
apply to tenders and settlements made on and after 
effective date of Amendment, on contracts entered into 
prior and subsequent to Amendment. 

Sec. 4. Method of publication under Act, 

Kegulation 3. 

Sec. 1. Chief Bureau of Markets to supervise performance of 

duties under the Act. 
Sec. 2. Boards of Cotton Examiners — Locations and membership 

thereof. 
Sec. 3. Supervisors of Cotton Inspection — How appointed — 

Duties thereof. 
Sec. 4. Chairman Board of Cotton Examiners — Eesponsibility of 

same. 



Sec. 


2. 


Sec. 


3. 


Sec. 


4. 


Sec. 


5. 



142 Appendix 

Ebgulation 4. 

classification requests. 
Sec. 1. Classification by lot or marks — Forms for request therefor. 
Sec. 2. Classification Eequests — How made. 
Sec. 3. Classification Requests — How and when filed. 
Sec. 4. Classification Eequests — ^Withdrawals and rejections 
thereof. 

Eegulation 5. 

inspection and samples. 
Sec. 1. Inspection, sampling and preparation of samples — 

Supervision thereof. 
Duties of owners. 
Prohibition of employes disapproved by Chief Bureau 

of Markets. 
Eejections, by whom made. 
Samples — How drawn. 
Samples — Weight of same. 
Head inspections, reports on conditions not indicated 

by samples. 
Samples, preparation thereof, originals and duplicates. 
Original samples to be classed by lot or mark — How 

wrapped. 
Original samples, labeling of wrappers. 
Duplicate samples, how wrapped and labeled. 
Samples, original and duplicate; deliveries to Board of 

Cotton Examiners. 
Separate samples furnished to owners. 
Samples — Careful handling enjoined to prevent loss of 

sand or change in character. 
Sec. 12. Samples — Eejections of samples for cause, by whom 

made. Ee-inspection and re-sampling, if necessary. 
Sec. 13. Eemoval of original samples by holders of cotton class 
certificates. 

How such removal affects rights for review. 
Sec. 14. Eemoval of duplicate samples by holders of certificates, 

when made. 



Sec. 


6. 


Sec. 


7. 


Sec. 


8. 


Sec. 


9. 


Sec. 


10. 


Sec. 


11. 



Appendix 143 

Sec. 15. Removal of samples an withdrawal of request for classic 
fication — time limit. 

Sec. 16. When samples become property of Agricultural Depart- 
ment. 

Begulation 6. 

classification. 

Sec. 1. Classification of cotton delivered on a Section 5 Contract 
can only he determined hy officers of United States 
Government designated under Regulations of the Secre- 
tary of Agriculture. 

Sec. 2. Order of classification. 

Sec. 3. Exposure of samples. 

Sec. 4. Light and other conditions necessary for accuracy. 

Sec. 5. Classification based on lower sample from bale. 

Sec. 6. All samples submitted, whether tenderable or untender- 
able, classified on basis of official standards. 

Sec. 7. Cotton reduced in value below its grade — cause to be de- 
termined and stated. 

Sec. 8 . Definitions of irregular cotton. 

Regulation 7. 

cotton class certificates. 

Sec. 1. Cotton Class Certificates — contents thereof. 

Sec. 2. Grades tenderable — Specifications thereof — Separate 
certificates therefor — Limit of staple. 

Sec. 3. Grades classed as untenderable — Separate certificates 
therefor. 

Sec. 4. New certificates issued on account of breaking or split- 
ting of lots, etc. 

Sec. 5. Loss or destruction of certificates, how replaced. 

Sec. 6, Exchange of certificates issued prior to Amendment of 
Section 5, for new style certificates under amended 
Act — How effected. 

Sec. 7. Surrender of certificates for cause, issuance of new cer- 
tificates therefor. 
Certificates not surrendered for cause on request of 
Chairman Board of Cotton Examiners, or Chief Bureau 
of Markets, shall be deemed invalid. 



144 Appendix 

Sec. 8. Validity of cotton class certificates for tenderable cotton 
for use in tenders on Section 5 Contracts made at, on 
or in Exchange specified in certificates. 

Sec. 9. Certificates invalidated by removal of cotton from storage 
place, except when handled and restored or transferred 
under supervision of Exchange Inspection Bureau, or 
except as provided in Eegulation 11. 

Sec. 10. Storage places — Cotton located or stored in places dis- 
approved by Chairman Board of Cotton Examiners or 
the Chief Bureau of Markets, will not be certificated — 
Certificates previously issued for cotton located or 
stored in such places shall be invalidated. How new 
certificates may be obtained on removals of such cotton. 

Sec. 11. Statements of cotton classified pursuant to Government 
regulations, withdrawn from storage, etc., to be fur- 
nished weekly by Exchange Inspection Bureau. 

Sec. 12. Conditions under which tenders or deliveries may be 
made; cotton class certificates required on or prior to 
delivery date, except as provided in Eegulation 8. 

Eegulation 8. 

delayed certification. 

Sec. 1. Deliveries may be made prior to issuance of certificates 
when samples have been in custody of the Board of 
Cotton Examiners for a prescribed time, subject to con- 
ditions specified in subsequent sections of this Eegula- 
tion. 

Sec. 2. Form of notice to be filed with Government officials on 
date of transferable notice. 

Sec. 3. When cotton must be inspected, sampled and samples de- 
livered to Board of Examiners. 

Sec. 4. Deliveries on written notice of tenderer, how made. Vali- 
dation of tenderer's notice by Chairman Board of Cotton 
Examiners. 

Sec. 5. When party tendering on his own notice of grade shall 
deliver to the receiver cotton class certificates of Board 
of Cotton Examiners. 
Eeplacement of untenderable bales included in tenderer's 
notice not permitted. 



Sec. 


1. 


Sec. 


2. 


Sec. 


3. 



Appendix 145 



Eegulation 9. 

postponed classification. 
Sec. 1. How postponement may be had. 
Sec. 2. Limit of time for filing notice. 

Custody of samples. 
Sec. 3. Loss of priority of classification. 

Sec. 4. When requests for classification shall be considered with- 
drawn. 

Eegulation 10. 

reviews. 
Limit of number of reviews. 
Limit of time for applications by owner. 
Limit of time for application by receiver. 
No reviews granted on cotton previously reviewed. 
Sec. 4. Before whom application for review shall be made. 
Surrender of cotton class certificates before review. 
Sec. 5. Application for reviews without good cause or for dila- 
tory purposes may be dismissed. 
Sec. 6. Classification of every bale in lot shall be reviewed. 
Sec. 7. Samples on which reviews shall be made. 
Sec. 8. Classifications in original class certificate not to be 

changed unless clearly erroneous. 
Sec. 9. Procedure when classification as shown by cotton class 

certificate is found to be correct. 
Sec. 10. Procedure when classification as shown by cotton class 

certificate is changed. 
Sec. 11. Tenderer shall replace cotton previously classed as tender- 
able, but found to be untenderable on review. 
Time and method of replacements, 

Eegulation 11. 

supervision of transfers of cotton. 
Sec. 1. Transfers of inspected and classed or certificated cotton 
from one market to another for delivery on a Section 5 
Contract. 



146 Appendix 

Sec. 2. Method of procedure. 

Sec. 3. Examination and tagging or sealing of bales. 

Sec. 4. Transfer of identification certificates. 

Sec. 5. Examination and identification of bales at place of destina- 
tion. 
Cotton class certificates for use at destination. 

Sec. 6. Bales differing in classification from that shown by cotton 
class certificates issued prior to transfer. 

Eegulation 12. 

costs of classification and certification. 

Sec. 1. Cost of classification and certification. 

Sec. 2. Cost of new certificate issued without re-classification 
on account of breaking or splitting lots or otherwise 
for convenience of holders. 

Sec. 3. Cost of certificates issued, without re-classification, on 
basis of findings under Section 5 Contract as un- 
amended. 

Sec. 4. Fee for reviews (or appeals). 
Minimum charge for a lot. . 

Sec. 5. [N'ew certificates for correction of clerical errors, free of 
cost. 
New certificates substituted account of change of form, 
free of cost. 

Sec. 6. Cost of supervision of transfers under Eegulation 11, in- 
cluding new certificates incidental thereto, if without 
re-classification. 

Sec. 7. Fee on samples withdrawn after delivery to the Board of 
Cotton Examiners, but before classification. 

Sec. 8. Samples not removed in accordance with regulations and 
loose cotton separated from samples in handling and 
classification to become property of Department of 
Agriculture. 

Sec. 9. x\dditional costs to be paid for transfer of cotton in- 
spected and sampled or supervision of transfer of 
cotton at a place other than where a Board of Cotton 
Examiners or Supervisor of Cotton Inspection is 
located. 



Appendix 147 

Sec. 10. Expense of inspection, sampling, preparation of samples, 
delivery of samples to classification room or other place 
designated to be borne by party requesting classifica- 
tion. 

Sec. 11. Bills for costs, by whom rendered. 
Limit of time for payment of bills. 

Sec. 12. Advance deposits to cover payments may be demanded. 

Sec. 13. Payments and advance deposits, how made. 

The Eegulations in full are as appended: 

REGULATIONS UNDEE SECTION 5 OF THE UNITED 
STATES COTTON FUTUEES ACT AS AMENDED 
MAECH 4, 1919. (ISSUED MAY 22, 1919) 

Eegulation 1. Definitions. 

Section 1. Words used in these regulations in the singular 
form shall be deemed to import the plural, and vice versa, as 
the case may demand. 

/Section 2. As used throughout these regulations, unless the 
context otherwise require, the following terms shall be construed, 
respectively, to mean — 

Paragraph 1. Tie ACT. The United States cotton fu- 
tures Act, approved August 11, 1916 (39 Statutes at Large, 
page 476). 

Paragraph 2. Exchange. Exchange, board of trade, or 
similar institution or place of business, at, on, or in which a 
section 5 contract may be made. 

Paragraph 3. Section 5 contract. Contract of sale of 
cotton for future delivery, mentioned in the Act, made at, on, 
or in any exchange in compliance with section 5 of the Act, as 
amended March 4, 1919. 

Paragraph 4. Person. Individual, association, partnership, 
or corporation. 

Paragraph 5. Owner. Person who owns, controls, or has 
the disposition. 

Paragraph 6. Bureau of Markets. Bureau of Markets of 
the United States Department of Agriculture. 



148 Appendix 

Paragraph 7. Exchange inspection bweuu. The inspec- 
tion bureau of the New York Cotton Exchange or of the New 
Orleans Cotton Exchange, or of any other exchange which may 
have an organized inspection bureau recognized as such by the 
Chief of the Bureau of Markets, as the case may be. 

Eegulation 2. General. 

Section 1. The inspection, sampling, and classification of 
cotton pursuant to section 5 of the Act, as amended shall be 
performed as prescribed in these regulations. All tenders of 
cotton and settlements therefor under section 5 contracts shall 
be made subject to these regulations. No contract shall for 
the purposes of these regulations be deemed to comply with sec- 
tion 5 of the Act as amended if it contain or incorporate there- 
in by reference or otherwise any provision or any by-law, rule 
or custom of an exchange which is inconsistent or in conflict 
with any requirement of said section 5, nor if the parties enter 
into any collateral or additional agreement or understanding, 
either verbal or written, respecting the subject matter of such 
contract which is inconsistent or in conflict with any require- 
ment of said section 5. 

Section 2. Nothing in these regulations shall be construed 
as relieving any party to a section 5 contract of any obligation 
imposed upon him, or as depriving him of any right to which he 
may be entitled, under any provision of the contract or exchange 
rule made a part thereof, which shall not be inconsistent with 
the Act as amended or the regulations made under the Act. 

Section 3. Any amendment to these regulations, unless 
otherwise stated therein, shall apply to all tenders of cotton and 
settlements therefor made on and after the effective date of 
such amendment, under section 5 contracts entered into prior, 
as well as subsequent, to such effective date. 

Section 4. Publications under the Act and these regula- 
tions may be made in service and regulatory announcements of 
the Bureau of Markets and by such other means as the Chief 
of the Bureau of Markets shall from time to time designate for 
the purpose. 



A Til 



n 



To be inserted at page 148 of the Book of By-Laws, Rules, etc. 
of the New Orleans Cotton Exchange — 1920 Edition. 

Amendment to Regulations of the Secretary of Agricult- 
ure under Section 5 of The United States Cotton 
Futures Act, as Amended March 4th, 1919; 
effective November 6th, 1919. 

In Regulation 2, at the end thereof, insert a new section, as 
follows : 

Sec. 5. As far as applicable, these regulations shall have the 
same force and effect for the purposes of Section 6 A' as for the 
purposes of Section 5 of the Act. 



Appendix 149 

Eegulation 3. Administration. 

Section 1. The Chief of the Bureau of Markets is charged 
with the supervision on behalf of the United States Department 
of Agriculture of the performances of all duties arising in the 
administration of the United States cotton futures Act. 

Section 2. There shall be located at New York, ^N". Y., at 
New Orleans, La._, and, when necessary in the opinion of the 
Chief of the Bureau of Markets, at any other point that he shall 
designate for the purpose, a board of cotton examiners. The 
members of such boards and the chairman of each shall be des- 
ignated for the purpose by the Chief of the Bureau of Markets. 

Section 3. The Chief of the Bureau of Markets whenever 
he deems necessary may designate an official or employee of the 
Department of Agriculture as super^dsor of cotton inspection, 
who shall supervise the inspection and sampling, and the pre- 
paration of samples of, cotton, for classification by a board of 
cotton examiners, and perform such other duties as may be re- 
quired of him, for the purposes of these regulations. 

Section 4. Subject to these regulations and the instructions 
of the Chief of the Bureau of Markets, the chairman of each 
board of cotton examiners shall be responsible for the proper 
performance of the duties imposed on such board and on the 
persons connected therewith. 

Regulation 4. Classification Requests. 

Section 1. For each lot or mark of cotton which the ap- 
plicant desires classified separately he shall make a separate writ- 
ten request in a form prescribed or supplied by the Bureau of. 
Markets for that purpose. 

Section 2. Such clssification requests shall include the 
name of the exchange under the rules of which it is contemplated 
that delivery of such cotton may be made, and the lot number, 
if any, the marks, the number of bales, the location, and the 
name of the owner of the cotton, for whose account the classi- 
fication is requested. It shall be signed by such owner or in 
his behalf by his agent. Such agent may, if authorized for 



150 Appendix 

the purpose, be the inspector-in-chief of the exchange inspec- 
tion bureau by which the cotton is inspected and sampled. 

Section 3. Such classification request, unless otherwise 
directed by the Chief of the Bureau of Markets, shall be filed 
with the board of cotton examiners at the place where the ex- 
change is located under the rules of which it is contemplated 
that delivery of the cotton may be made. It shall be so filed 
before the inspection and sampling of the cotton shall be per- 
formed, except that, if the identity of the particular bales to be 
submitted for classification may not be determined until the in- 
spection thereof, the classification request shall be filed 
as soon as the inspection and sampling shall be completed 
and before the delivery of the samples as required by these regu- 
lations. In such case the inspection and sampling shall not be 
performed until advance notice thereof shall have been given to 
the board or the ofiicer with whom the classification request is 
required to be filed. 

Section 4. Any Classification request may be withdrawn by 
the applicant at any time before the classification of the cotton 
covered thereby, subject to the payment of such fees, if any, as 
may be prescribed pursuant to regulation 12. Any classification 
request may be rejected for non-compliance with the Act or these 
regulations. 

Eegulation 5. Inspection and Samples. 

Section 1. The inspection and sampling and the prepara- 
tion of samples of cotton of which classification is desired shall 
be subject to the supervision and in accordance with the instruc- 
tions of a supervisor of cotton inspection or a cotton examiner, 
whose duties include such supervision. 

Section 2. The owner of the cotton shall cause the cotton 
to be made available to such supervisor or cotton examiner for 
such examination as may be necessary for the purposes of its 
classification, and shall take such steps as may be necessary to 
secure its proper inspection and sampling and the proper prepara- 
tion and delivery of representative samples thereof at the place 
designated therefor, in accordance with these regulations, with- 
out expense to the Department of Agriculture. 



Appendix 151 

Sectiox 3. Xo person shall after notice to the interested 
parties be employed in any way in connection with any phase of 
the inspection and sampling of cotton, or the preparation of the 
samples thereof, for the purposes of classification under these 
regulations, who for good cause is disapproved by the Chief of 
the Bureau of Markets. 

Section 4. No cotton covered by a classification request 
filed as provided in these regulations shall be rejected by any 
person other than a cotton examiner, on account of grade or 
staple or otherwise, unless the request for the classification of the 
cotton so rejected shall be withdrawn by the person by whom it 
was made. 

Section 5. One sample shall be drawn from the top side 
of each bale and one from the bottom side. Each such sample 
shall weigh not less than four ounces, the two samples from each 
bale to weigh together as nearly as possible eight ounces. The 
head of the bale shall be properly inspected and any conditions 
not fully indicated by the samples shall be specified by the in- 
spector or the sampler of the cotton in a written memorandum 
which shall accompany the samples to the board of cotton exam- 
iners. 

Section 6. The samples from each bale shall be prepared 
as specified in this section. The sample from the top side and 
the sample from the bottom side shall each be broken in halves 
across the layers, without seperating the layers. One half of 
the sample from the top side shall be placed with a half of the 
sample from the bottom side, making two sets of samples from 
each bale. There shall be placed in each set of samples between 
the two sides thereof a coupon showing the number of the tag 
attached to the bale from which such samples were drawn. One 
of the two sets of samples from each bale shall be called the orig- 
inal and the other the duplicate. 

Section 7. The original sets of samples of the bales consti- 
tuting a lot or mark to be classified separately shall be inclosed in 
one or more wrappers or containers as the case may re- 
require. The wrappers or containers of original samples shall be 
so labeled or marked or both as to show that they contain original 
samples, together with the lot number, if any, the marks, and 
the number of bales, and such other information as may be necessary 



152 Appendix 

in accordance with the instructions of the chairman of the board 
to which the samples are to be delivered or the Chief of the Bu- 
reau of Markets. 

Section 8. The duplicate sets or samples shall be inclosed 
in wrappers or containers separate and apart from the original 
sets, in the manner prescribed for the original samples in the 
foregoing section, except that the wrappers or containers shall 
be labeled or marked, or both, so as to show that they contain 
duplicate samples. 

Section 9. The original and the duplicate samples shall be 
delivered to the board of cotton examiners with which the clas; 
sification request was filed, at its classification room, or shall be 
delivered at such other place as may be designated for the pur- 
pose by the chairman, of the board or the Chief of the Bureau 
of Markets. JSTo samples covered by pending classification re- 
quests which are ready for delivery as provided herein 
shall be withheld from such delivery except pursuant to the writ- 
ten request of such chairman or the Chief of the Bureau of Mar- 
kets. 

Section 10. In addition to the samples hereinbefore pre- 
scribed, seperate samples, if desired, may be drawn and fur- 
nished to the owner of the cotton, 

Section 11. All persons in any way connected with the 
inspection and sampling and handling of samples of cotton for 
the purpose of classification pursuant to these regulations shall 
carefully handle them in such manner as not to cause loss of 
sand therefrom or any change otherwise in their representative 
character. 

Section 12. Any sample or set of samples which does not 
meet the requirements of these regulations or which does not 
correctly represent the bale or bales from which drawn may be 
rejected by a supervisor of cotton inspection or a cotton examiner, 
whose duties include the supervision or examination of such cot- 
ton. Whenever the supervisor of cotton inspection or the chair- 
man of the board shall find it necessary in order to determine 
the true classification of any bale, such bale shall be reinspected, 
and if necessary re-sampled, and the new samples shall be de- 
livered at the place designated therefor in accordance with these 
regulations. 



Appendix 153 

Sectiox 13. Original samples may be removed by the holder 
of the cotton class certificate covering the same, at any time with- 
in two calendar weeks after the date of such certificate. If a 
review of the classification shown by such certificate has not been 
asked for or completed and the removal takes place within the 
time allowed for making application for review, or before the 
completion of a review if asked for, such removal shall be deemed 
to be a waiver, by the holder of the certificate, of his right to 
have a review, 

Sectiox 14. Duplicate samples may be removed by the 
holder of the cotton class certificate covering the same, at any 
time within two calendar weeks after such certificate becomes 
invalid as provided in section 8 of regulation 7, or after the 
surrender to the board for cancellation of the certificate cover- 
ing the cotton represented thereby without the issuance of a 
new certificate in lieu thereof. 

Sectiox 15. In case a classification request shall be with- 
drawn prior to the classification of the cotton pursuant thereto, 
the applicant ma}', within two calendar weeks after the date of 
such withdrawal^ remove any samples of the cotton involved then 
in the passession of the Department of Agriculture. 

Sectiox 16. Samples not removed in accordance with this 
regulation shall be disposed of in accordance with section 8 of 
regulation 12. 

Regulation 6. Classification. 

Sectiox 1. For the purposes of section 5 of the Act as 
amended, the classification of any cotton shall be determined only 
by cotton examiners designated as such by the Chief of the Bu- 
reau of Markets. 

Sectiox 2. All cotton for which classification requests shall 
be pending shall be classified as far as practicable in the order 
in which proper samples thereof, ready for such classification, 
shall have been delivered to the board of cotton examiners whose 
duties include the examination thereof, except as otherwise pro- 
vided in these regulations or when the chairman of the board or 
the Chief of the Bureau of Markets shall find that an emergencj 
exists and shall order otherwise. 



154 Appendix 

Section 3. Such classification shall not proceed until the 
samples, after being delivered to the board, shall have been ex- 
posed for such length of time as in the judgment of the chair- 
man shall be sufficient to put them in proper condition for the 
purpose. 

Section 4. Such classification shall proceed as rapidly as 
possible, but not when light or other conditions make uncertain 
the accuracy of the results to be obtained. 

Section 5. In case a sample drawn from one portion of a 
bale is lower in class than one drawn from another portion of 
such bale, except as otherwise provided in these regulations, the 
classification of the bale shall be that of the sample showing the 
lower class. 

Section 6. All cotton whether tenderable or untenderable 
shall be classified on the basis of the official cotton standards of 
the United States in effect at the time of such classification. 

Section 7. If cotton be reduced in value, by reason of the 
presence of extraneous matter of any character or irregularities 
or defects, below its grade according to the official cotton stand- 
ards of the United States, the grade to the value of which it is 
so reduced, and the quality or condition which so reduces its 
value, shall be determined and stated. 

Section 8. For the purposes of classification the following 
terms shall be construed, respectively, to mean — 

(a) Cotton of perished staple — Cotton that has had the strength 
of fiber as ordinarily found in cotton destroyed or unduly reduced 
through exposure to the weather either before picking or after 
baling, or through heating by fire, or on acount of water pack- 
ing, or by other causes. 

(b) Cotton of immature staple — Cotton that has been picked 
and baled before the fiber has reached a normal state of maturity, 
resulting in a weakened staple of inferior value. 

(c) Gin cut cotton — Cotton that shows damage in ginning 
through cutting by the saws, to an extent that reduces its value 
more than two grades. 

(d) Reginned cotton. — Cotton that has passed through the 
ginning process more than once, and cotton that, after having been 
ginned, has been subjected to a cleaning process and then baled. 

(e) Repacked cotton. — Cotton that is composed of factors', 



Appendix 155 

brokers', or other samples, or of loose or miscellaneous lots col- 
lected and rebaled. 

(f) False packed cotton. — Cotton in a bale (1) containing 
substances entirely foreign to cotton, (2) containing damaged 
cotton in the interior with or without any indication of such 
damage upon the exterior, (3) composed of good cotton upon the 
exterior and decidedly inferior cotton in the interior, in such 
manner as not to be detected by customary examination, that is, a 
plated bale, or (1) containing pickings or linters worked into the 
bale. 

(g) Mixed packed cotton. — Cotton in a bale which shows 
a difference of more than two grades between samples drawn 
from the heads and the top and bottom sides of the bale, or which 
shows a difference in color exceeding two grades between such 
samples. 

(h) ^Vater-packed cotton — Cotton in a bale that has been 
penetrated by water during the baling process, causing damage 
to the fiber, or a bale that through exposure to the weather or by 
other means, while ap|parently dry on the exterior, has been 
damaged by water in the interior. 

Eegulation 7. Cotton Class Certificates. 

Sectiox 1. As soon as practicable after the classification 
of cotton has been completed by a board of cotton examiners it 
shall issue cotton class certificates showing the results of such 
classification. Each certificate shall bear the date of its is- 
suance and shall be signed by the chairman of the board that 
classified the cotton. The certificate shall show the identification 
of the cotton according to the information in the possession of 
the board, the classification of the cotton according to its grade 
and length of staple, and such other facts as the Chief of the Bureau 
of Markets shall require. 

Section 2. For each lot of cotton classified by the board as 
tenderable in whole or in part on a section 5 contract it shall 
issue a separate certificate which shall be distinctly different in 
color from one for cotton found to be untenderable on such con- 
tract. Such certificates shall be consecutively numbered in 
separate series for each exchange. Thev shall show onlv cotton 



156 Appendix 

classified according to the grades specified in this section which is 
seven-eigths of an inch or more in length of staple : 

White Yellow Tin^red Yellow Stained 

Middling fair Good middling- Good middling 

Strict good middling Strict middling 

Good middling 

Strict middling 

Middling 

Strict low middling 

Low middling 

Section 3. For each lot of cotton classified by the board 
as nntenderable in whole or in part on a section 5 contract it shall 
issue a separate certificate which shall be distinctly different in 
color from one for cotton found to be tenderable on such con- 
tract. Such certificates shall be consecutively numbered in 
separate series for each exchange. They shall show all cotton 
classified according to the grades specified in this section, or which 
is less than seven-eighths of an inch in length of staple, or which 
is otherwise declared to be undeliverable by the fifth subdivision 
of section 5 of the Act as amended: 

White Yellow Tinged Yellow Stained Blue Stained 

Strict good ordinary Middling Strict middling Good middling 

Good ordinary Strict low middling Middling Strict middling 

Low middling Middling 

Section 4. Upon the written request of the holder of a 
cotton class certificate issued under these regulations a new certifi- 
cate shall be issued, without the reclassification of the cotton, 
to take place of the former certificate for any cotton covered 
thereby, when necessary on account of the breaking or splitting 
of a lot or otherwise for the business convenience of such holder. 
In such case the former certificate shall be surrendered for can- 
cellation before the issuance of a new certificate. Such new 
certificate shall bear a new number and the date of its issuance 
and shall otherwise comply with these regulations. 

Section 5. Upon the written request of the last holder of 
a valid cotton class certificate and a showing to the satisfaction of 
the chairman of the board of cotton examiners which issued 
such certificate that it has been lost or destroyed, and, if lost, that 
diligent effort has been made to find it without success, a new 
certificate shall be issued without the reclassification of the cot- 
ton. Such new certificate shall bear the same number and date 



Appendix 157 

of issuance as the lost or destroyed certificate, and shall include 
a statement to the effect that it is a duplicate issued in lieu 
of a lost or destroyed original, as the case may be. 

Section 6. Upon the written request of the owner of the 
cotton and the presentation to the board of cotton examiners of 
a copy issued by the Secretary of Agriculture of his findings in 
a dispute under section 5 of the Act as unamended, involving 
such cotton, cotton class certificates otherwise complying with 
these regulations shall be issued for any cotton covered by such 
findings, without the re-classification thereof. Such request 
shall be filed with the board of cotton examiners at the place where 
the cotton was located at the time such dispute arose, shall 
specify the cotton to be covered by the certificate, with the lo- 
cation thereof, and shall be in such form as the Chief of the 
Bureau of Markets shall require. Such certificate shall not 
be issued for cotton not stored under the supervision of the ex- 
change inspection bureau at such place, except as provided in regu- 
lation 11. Each such certificate shall show that it is issued upon 
the basis of findings of the Secretary of Agriculture in a dis- 
pute under section 5 of the Act as unamended, together with the 
number of the dispute and date of the findings. 

Section 7. For good cause an}^ certificate issued under 
these regulations shall be surrendered to the chairman of the 
board of cotton examiners which issued it, upon his request or 
upon the request of the Chief of Bureau of Markets, and a new 
certificate complying with these regulations may be issued in 
substitution therefor. If such certificate be not surrendered 
upon such request it shall nevertheless be invalid for the pur- 
poses of section 5 of the Act as amended and these regulations. 

Section 8. Each cotton class certificate for cotton classified 
as tenderable shall be vaKd for use in the tender of such cotton 
on a section 5 contract made at, on, or in the exchange specified 
in such certificate, as provided in the Act and these regulations, 
and in the rules of the said exchange not inconsistent therewith. 

Section 9. Any cotton class certificate shall become invalid 
for use in the tender or delivery of the cotton covered thereby 
on a section 5 contract whenever such cotton shall be removed 
from the place of storage specified therein, except when it is 
handled and restored or transferred to a different place of stor- 



158 Appendix 

age under the supervision of the same exchange inspection bu- 
reau, or except as provided in regulation 11. 

Section 10. No cotton submitted for classification under sec- 
tion 5 of the Act as amended shall be located or stored at a 
place disapproved for the purpose by the chairman of the board 
(/f cotton examiners or the Chief of the Bureau of Markets on 
account of being unsuitable for the safekeeping or proper storage 
of such cotton, or on account of the failure or refusal of the 
custodian thereof to comply or to permit compliance with the 
requirements of these regulations so far as he may be involved 
therein. N^otice of such disapproval shall be given in such man- 
ner as the Chief of the Bureau of Markets may direct. There- 
after, every cotton class certificate, if any, previously issued for 
cotton located or stored at such place shall be invalid for the 
delivery of such cotton on a section 5 contract, unless the cot- 
Ion shall be removed under the supervision of the exchange in- 
spection bureau, or a representative of the Department of Agri- 
sulture designated for the purpose by the chairman of the board 
of cotton examiners or the Chief of the Bureau of Markets, to 
a place which shall be suitable for the purpose. Upon such re- 
moval and the request of the holder of the cotton class certifi- 
cate for such cotton, a new certificate in lieu thereof, as pro- 
vided elsewhere in these regulations, shall be issued to him. 

Sectio^t 11. The exchange inspection bureau, under the su- 
pervision Or control of which any cotton classified pursuant to 
these regulations shall be held or stored, shall furnish to the board 
of cotton examiners which classified such cotton, on the first busi- 
ness day of each calendar week, a written statement of all cot- 
ton withdrawn from storage, or the lot number or other iden- 
tification of which has been changed, or which has otherwise been 
removed from the supervision or control of such exchange inspec- 
tion bureau, during the next preceeding calendar week. Such 
statement shall show each lot number, and, if changed, the new 
lot number, and in case of the withdrawal or removal of a por- 
tion only of the lot the tag numbers of the bales so withdrawn 
or removed. If such removal shall be to a different place of 
storage under the supervision or control of the exchange inspec- 
tion bureau, the statement shall show the new location. 

Section 12. Subject to the provisions of regulation 8, no 



Appendix 159 

cotton shall be tendered or delivered upon a section 5 contract, 
unless on or prior to the date fixed for delivery under such con- 
tract, and in advance of final settlement of the contract, the 
person making the tender shall furnish to the person receiving 
the same a valid outstanding cotton class certificate, comply- 
ing with these regulations, showing such cotton to be tenderable 
on a section 5 contract. 

Regulation 8. Delayed Certification. 

Section 1. If upon the date fixed for delivery in accor- 
dance with section 5 of the Act cotton class certificates shall not 
have been issued by a board of cotton examiners for cotton to be 
delivered pursuant to such notice, samples of which cotton shall have 
been in the custody of the board for the time hereinafter pre- 
scribed, the delivery of such cotton may be made upon compliance 
with and subject to the conditions specified in this regulation. 
This regulation shall not apply to cotton upon which a review is 
pending. 

Section 2. On the date of giving the transferable notice 
of the delivery in accordance with section 5 of the Act the per- 
son issuing such notice shall also give written notide to the 
board or ofilcer with whom the classifijcation request was re- 
quired to be filed, specifying the date of delivery and the num- 
ber of bales so to be delivered which have not been certified^ 
In such notice, or later in writing before the delivery of the samples 
to the board, he shall specify the lot numbers of the cotton so to 
be delivered. 

Section 3. Such cotton must be duly inspected and sam- 
pled and samples thereof must be delivered to the board not later 
than the date of the issuance of the transferable notice, except 
when the delivery date fixed by such transferable notice is the last 
delivery day in the month of delivery. In such case the cotton 
must be duly inspected and sampled and the samples thereof 
must be delivered to the board not later than the close of the 
second business day proceeding such last delivery day. 

Section 4. If on the morning of the delivery day specified 
in the transferable notice the cotton class certificates covering 
the cotton involved are not ready for delivery when called for, 



160 Appendix 

the tenderer of the cotton shall present to the board of cotton 
examiners a written notice stating to the best of his knowledge 
and belief the true grades of each individual bale to be delivered, 
properly identifying each bale with its grade. If the foregoing 
requirements of this regulation shall have been complied with, 
the chairman of the board shall cause to be written or stamped 
on such notice a statement validating it for use in the tender 
only on such delivery day of the cotton covered thereby pending 
thQ issuance of cotton class certificates in accordance with these 
regulations. The tenderer shall on such dlivery day deliver such 
notice to the receiver of the cotton, together with the warehouse 
receipts and such other papers as may be necessary to the de- 
livery of the cotton on such day. 

Section" 5. The person making the tender shall deliver the 
cotton class certificates therefor to the receiver of the cotton be- 
fore the close of business hours on the date of the issuance there- 
of, if delivered to such tenderer before eleven o'clock a. m. on that 
day. If the cotton class certificates be delivered to him after eleven 
o'clock a. m. on that day, the tenderer shall in turn deliver them 
to the receiver before eleven o'clock a. m. on the next following 
business day. There shall be no right of replacement of bales shown 
by such certificates to be untenderable. 

Eegulation 9. Postponed Classification. 

Section 1. If the applicant desires the postponement of 
the classification of any cotton covered by a classification re- 
quest filed pursuant to these regulations until later notice, the 
original classification request must so state, or the applicant 
must so advise the board in writing before the classification has 
been entered upon. Such request must show cause and that it is 
not merely for dilatory reasons. 

Section 2. If thereafter the classification of the cotton be 
desired, notice thereof must be filed not later than the expira- 
tion of one year after the date of the receipt of the samples of 
the cotton by the board, and the samples must have remained in 
its possession. 

Section 3. Classification pursuant to such suspended re- 
quest shall not be allowed to interfere with or delay the classi- 



Appendix 161 

fication of other samples previously made ready for classification or 
which are otherwise entitled to priority. 

Section 4. If the period of one year hereinbefore specified 
shall expire without the filing of the notice of desire for clas- 
sification the applicant shall be deemed to have withdrawn the 
original request for the classification of such cotton. 

Regulation 10. Reviews. 

Section 1. One review only of the classification of any lot 
of cotton may be obtained as provided in this regulation. 

Section 2. The person for whom the classification of any 
lot of cotton shall have been performed under these regulations 
may have a review of the clasification of such lot by filing written 
application therefor before the delivery of such cotton on a sec- 
tion 5 contract and not later than the expiration of the third 
business day following the date of the issuance of the cotton 
class certificate for the cotton involved. 

Section 3. In case no review shall have been previously 
granted under this regulation for the cotton involved a receiver 
thereof upon a section 5 contract may have a review of the clas- 
sification of the cotton involved as shown by a valid cotton class 
certificate by filing a written application not later than the expira- 
tion of the fifth business day following the date of the delivery 
of such certificate to him in accordance with these regulations 

Section 4. The written application for a review shall be 
filed with the board which issued the cotton class certificate cov- 
ering the cotton involved. Before a review shall be granted 
the cotton class certificate or certificates covering the cotton in- 
volved shall be surrendered to the board. 

Section 5. Any application for review may be dismissed 
whenever it shall be found by the chairman of the board or the 
Chief of the Bureau of Markets that it was filed without good 
cause or for dilatory purposes. 

Section 6. The classification of every bale of cotton included 
in a lot covered by such application shall be reviewed. 

Section 7. Unless the use of new samples shall be neces- 
sary in the judgment of the chairman of the board a review 
pursuant to this regulation shall be made on the basis of all the 
samples of the cotton involved in the possession of the board. 



162 Appendix 

Section 8. The classification of any bale shown by the origi- 
nal cotton class certificate shall be changed only when it shall 
appear npon the review that such classification was clearly er- 
roneous. 

Section 9. If the classification of all the cotton as shown by 
the cotton class certificates be found to be correct, there shall be 
placed upon the certificate a notation, which shall be signed by 
the chairman of the board and dated, to the effect that the clas- 
sification of the cotton covered by such certificate has been re- 
viewed and determined to be as stated in such certificate. There- 
upon the certificate shall be returned to the person who requested 
the review. 

Section 10. If the classification of any bale of cotton as 
shown by the cotton class certificate shall be changed, such cer- 
tificate shall be cancelled and there shall be issued in lieu there- 
of a new certificate showing the classification of each bale as 
determined upon such review. There shall be incorporated in 
^uch certificate a statement to the effect that the classification of 
the cotton covered thereby has been removed and determined to be 
as stated in such certificate. Such certificate shall bear a new 
number and the date of its issuance and shall be delivered to the 
person who requested the review. 

Section 11. If the determination of a review granted to a 
receiver of cotton tendered upon a section 5 contract shows cot- 
ton previously classed as tenderable to be actually untenderable, 
the tenderer shall replace the cotton so found to be untenderable. 
Such replacement shall be made not later than the expiration of 
the fifth business day following the date of the issuance of the 
review certificate, by delivering to the receiver other cotton shown 
to be tenderable by cotton class certificates complying with these 
regulations which certificates he shall deliver to the receiver. 

Regulation 11. Supervision of Transfers of Cotton. 

Section 1. Whenever the owner of any cotton inspected 
and sampled for classification pursuant to these regulations, or 
for which he holds valid cotton class certificates, desires to trans- 
fer sucli cotton to a different place for the purpose of having it 



Appendix 163 

made available for delivery upon a section 5 contract at the place 
to which it is to be removed, the procedure shall be as outlined 
in this regulation. Conformity to this procedure shall not be 
necessary in the case of the transfer of cotton between different 
warehouses at the same place when such transfer is effected un- 
der the supervision of the exchange inspction bureau at such place. 
In such case the exchange inspection bureau shall report the 
facts to the board of cotton examiners, in accordance with sec- 
tion 11 of regulation 7. 

Section 2. The person who made the request for the classi- 
fication or the holder of the cotton class certificate therefor shall 
file with the board of cotton examiners with which the classi- 
fication request was filed or which issued the certificate a writ- 
ten request for the supervision of such transfer. Such request 
shall be in such form as the Chief of the Bureau of Markets 
shall prescribe. It shall properly identify the cotton and state 
the respective locations from and to which the cotton is to be 
transferred. If the cotton class certificate for such cotton has pre- 
viously been issued by the board the holder thereof shall surrender 
such certificate to the board before such transfer shall take place. 

Section 3. As soon as practicable after the filing of such 
request a supervisor of cotton inspection or a cotton examiner 
shall examine each bale of cotton covered by the transfer re- 
quest, and shall attach to it a metal tag or seal provided for the 
purpose by the Bureau of Markets. 

Section 4. Thereupon there shall be issued to the person 
requesting the same a transfer certificate in form prescribed for 
the purpose by the Chief of the Bureau of Markets, properly 
identifying the cotton according to such metal tags or seals, and 
the other means of identification in the possession of the board, 
showing the respective locations from which and to which the cotton 
is to be transferred. 

Section 5. When the cotton shall have been delivered for 
storage at the place of its destination the transfer certificate 
shall be surrendered to the chairman of the board at such place 
or to such official as the Chief of the Bureau of Markets shall 
designate for the purpose. Thereupon a supervisor of cotton 
inspection or a cotton examiner shall examine each bale of cotton 
covered by such transfer certificate. If he finds that the iden- 



164 Appendix 

tity of the cotton has been properly preserved there shall be is- 
sued to the person requesting the same a cotton class certificate 
or certificates, complying with these regulations, valid for use 
at such destination, without the reclassification of the cotton. 

Section 6. Supervision of transfers in accordance with this 
regulation shall not be granted, nor shall any certificate be is- 
sued, with respect to any bale which is found to be in such con- 
dition that its classification is different from that shown by the 
cotton class certificate, unless such bale shall be reinspected and, 
if necessary, reclassified in accordance with these regulations. 

Eegulation 12. Costs of Classification and Certification. 

Section 1. For the classification and certification of cotton 
pursuant to these regulations, except as otherwise hyereinafter 
provided, whether such cotton be tenderable or not, the person 
requesting the classification shall pay a fee of thirty cents per 
bale. 

Section 2. For each new certificate issued in substitution 
for a prior certificate at the request of the holder thereof, on 
account of the breaking or splitting of a lot. of cotton covered 
thereby or otherwise for his business convenience, without the 
reclassification of the cotton involved, the person requesting such 
substitution shall pay a fee of fifteen cents when the number of 
bales covered by the new certificate is ten or less, or a fee of 
twenty-five cents when the number of bales covered by such cer- 
tificate is more than ten. 

Section 3. For each certificate issued on the basis of find- 
ings of the Secretary of Agriculture under section 5 of the Act 
as unamended, without the reclassification of the cotton involved, 
the person requesting such certificate shall pay a fee of fifteen 
cents when the number of bales covered by the certificate is ten 
or less, or twenty-five cents when the number of bales covered by 
such certificate is more than ten. 

Section 4. For the review of the classification of any cot- 
ton the applicant shall pay a fee of thirty-five cents per bale with 
a minimum of $3.50 for each lot so reviewed, except that if the 
classification of more than ten per centum of the bales in any 



"mm^tmm* m i i i w w« 



To be inserted at page 164: of the Book of By-Laws, Eules, etc., 
of the New Orleans Cotton Exchange — 1920 Edition. 

Amendment to Regulations of the Secretary of 
Agriculture Under Section 5 of the United 
States Cotton Futures Act, as amend- 
ed March 4th, 19 19; effective 
May 17, 1920* 

In Eegnlation 12, amend sections 1 and 2 so as to read as 
follows : 

Sec. 1. For the classification and certification of cotton pursu- 
ant to these regulations, except as otherwise hereinafter provided, 
whether such cotton be tenderable or not, the person requesting 
the classification shall pay a fee of fift}^ cents per bale. 

Sec. 2. For each new certificate issuel in substitution for a 
prior certificate at the request of -the holder thereof, on account 
of the breaking or splitting of a lot of cotton covered thereby or 
otherwise for his business convenience, without the reclassification 
of the cotton involved, the person requesting such substitution shall 
pay a fee of twenty-five cents when the number of bales covered 
by the new certificate is ten or less, or a fee of fifty cents when 
tlie number of bales covered bv such certificates is more than ten. 



JBiMi 



w» ■ v^ tP' '■ -^ 






m 



To be inserted at page 164 of the Book of By-Laws, Rules, etc., 
of the New Orleans Cotton Exchange — 1920 Edition. 



Amendment to Regulations of the Secretary of Agriculture 
Under Section 5 of the United States Cotton Futures Act, as 
amended March 4, 1919; effective February 16, 1920. 

In Regulation 12, amend Section 1 so as to read as follows : 

Section 1. For the classification and certification of cotton 
pursuant to these regulations, except as otherwise hereinafter pro- 
vided, whether such cotton be tenderable or not, the person request- 
ing the classification shall pay a fee of forty cents per bale. 






#• 



d 



r 




(To be inserted at page 1.64 of the Book of By-Laws, Rules, 
etc., of the New Orleans Cotton Exchange — 1920 Edition.) 

Amendment to Regulations of the Secretary of Agri- 
culture under Section 5 of the United States 
Cotton Futures Act, as amended March 
4th, 1919, effective on and 
after April 1st, 1921. 

In Regulation 12, amend sections 1 and 7 so as to read as 
follows : 

Sec. 1. For the classification , and certification of cotton pur- 
suant to these regulations, except as otherwise hereinafter pro- 
vided, whether such cotton be tenderable or not, the person re- 
questing the classification shall pay a fee of forty cents per bale. 



Sec. 7. When the request for the classification of any cotton 
shall be withdrawn after the delivery of the samples thereof to the 
board, but before the classification of such cotton pursuant to such 
request, the person making the request for the classification shall 
pay a fee of three cents per bale. This fee shall not apply wl;ien 
the fee of forty cents per bale prescribed by section 1 of this 
regulation is required. 



\ 



\1 



To be inserted at page 164: of the book of By-laws, Eules, etc., 
of the New Orleans Cotton Exchange — 1920 Edition. 

AMENDMENT TO REGULATIONS OF THE SECRETARY OF 

AGRICULTURE UNDER SECTION 5 OF THE UNITED 

STATES COTTON FUTURES ACT, AS AMENDED 

MARCH 4th, 1919; EFFECTIVE 

JUNE 1st, 1921. 

In Eegulation 12. amend section 1 so as to read as follows : 

Sec. 1. For the classification and certification of cotton pur- 
suant to these regulations, except as otherwise hereinafter provided, 
whetlier such cotton be tenderable or not, the person .^v.|aesLiijg tlie 
classification shall pay a fee of thirty cents per bale. 






(To be inserted at page 164 of the Book of By-laws, Rules, etc., of 
the New Orleans Cotton Exchange — 1920 Edition.) 




AMENDMENT TO REGULATIONS OF THE SECRE- 
TARY OF AGRICULTURE UNDER SECTION 
5 OF THE UNITED STATES COTTON 
FUTURES ACT, AS AMENDED 
MARCH 4TH, 1919, EFFECT- 
IVE ON AND AFTER 
SEPTEMBER 1ST, 
1921. 

In regulation 12, amend sections 1, 4 and 14 as follows: 

Sec. 1. For the classification and certification of cotton pursu- 
ant to these regulations, except as otherwise herein after provided, 
whether such cotton be tenderable or not, the person requesting 
the classification shall pay a fee of twenty cents per bale. 

Sec. 4. For the review of the classification of any cotton the 
applicant shall pay a fee of twenty-five cents per bale with a 
minimum of $2.50 for each lot so reviewed, except that if the 
classification of more than ten per centum of the bales in any lot be 
changed no fee shall be collected for the review of such lot. 



Sec. 14. For the examination of samples and the opinion re- 
garding the classification thereof in accordance with regulation 13, 
the person requesting the same shall pay a fee of twenty cents for 
each bale of cotton involved. Payment of such fee shall be made 
in accordance with section 13 of this regulation to such board of 
cotto]] examiners before the issuance of its opinion. 



^^^^^^ 



obe inserted at page 165 of the book of By-laws, Enles, etc., 
of the Xew Orleans Cotton Exchange — 1920 Edition. 

AMENDMENT TO REGULATIONS OF THE SECRETARY OF 

AGRICULTURE UNDER SECTION 5 OF THE UNITED 

STATES COTTON FUTURES ACT, AS AMENDED 

MARCH 4th, 1919; EFFECTIVE 

JUNE 1st, 1921. 

In Eegulation 12, amend section 7 so as to read as follows: 

Sec. 7. When the request for the classification of any cotton 
shall he withdrawn after the delivery of the samples thereof to 
the board, but before the classification of such cotton pursuant to 
such request, the person making the request for the classification 
shall pay a fee of three cents per bale. This fee shall not apply 
when the fee prescribed by section 1 of this regulation is required. 



+'^ 



\¥ 



:'-?-=;;ESi:ir±-. «.....*., 



States Cotton'Fu?rrXc't 1 '^^ ^!!"^^ 
ed March AtU ^' ^^ ^mend- 

larcft 4th, 19 19. effective 
May 17, 1920. 

^n BeguJation 13, amend Section 7 « . 

^ Sec. 7. IVhen the request for fl , "' *° ''^'"^ «^ f°Uo^s: 
;hall be .,tM«wn after'd Lt '" f^-^A-t-" of any cotton 
board, b„t before the classification of T '''''^^'' ^^''"'^ ^ the 
-quest the person making the ".LT ^ T" P""™"* *° --'^ 
^.^- a fee of three cents ptr bale 'ti f' ]" '''^^'^^^tion shal] 

e fee of fift, eents per LeTesJ'uV'f ''"' ^PP^^' -'^en 
atlon IS required. P^e^cnbed br Section 1 of this regn- 



/-* 



1^^ 



«Mii 



Appendix 165 

lot be changed no fee shall be collected for the review of such 
lot. 

Section 5. N"o fee shall be collected for a new certificate 
issued in lieu of a prior certificate solely for the purpose of cor- 
recting clerical errors therein or for the purpose of substituting 
a new form applicable to outstanding certificates, or without an 
application therefor. 

Section 6. For the supervision of the transfer of cotton in 
accordance with regulation 11, including such new certificates 
incidental thereto as may be necessary for the delivery of such 
cotton upon a section 5 contract without its reclassification, the 
applicant for such transfer supervision shall pay a fee of twenty 
cents per bale. 

Section 7. Wlien the request for the classification of any 
cotton shall be withdrawn after the delivery of the samples there- 
of to the board, but before the classification of such cotton pur- 
suant to such request, the person making the request for the 
classification shall pay a fee of three cents per bale. This fee 
shall not apply when the fee of thirty cents per bale prescribed 
by section 1 of this regulation is required. 

Section 8. Samples not removed in accordance with these 
regulations and loose cotton separated from the samples in the 
handling and classification thereof by a board shall become the 
property of the Department of Agriculture. Such cotton shall 
be disposed of in the manner prescribed for other property by 
the property regulations of the Department of Agriculture but 
the proceeds thereof shall be deemfid to be part of the cost of 
classification pursuant to these rgulations. Such proceeds shall 
be deposited with other moneys received in payment of costs 
to the credit of the revolving funds provided by the seventh sub- 
division of section 5 of the Act as amended. 

Section 9. When the inspection and sampling or the super- 
vision of the transfer of any cotton shall be performed at a place 
other thccxi txiat where a board of cotton examiners or supervisor of 
cotton inspection is regularly located, the person making the 
request for the classification or the supervision of the transfer 
of the cotton shall pay, in addition to the costs hereinbefore pre- 
scribed, the necessary traveling expenses and subsistence, or per 
diem in lieu of subsistence, incurred on account of such re- 



166 Appendix 

quest, in accordance with the fiscal regulations of the Department 
of Agriculture, by the persons employed by the Department of 
Agriculture to supervise such inspection and sampling or trans- 
fer. 

Section 10. The expense of inspection and sampling, the 
preparation of the samples, and the delivery of such samples to 
the classification room of the board of cotton examiners, or other 
place designated for the purpose by the Chief of the Bureau of 
Markets or by the chairman of such board, shall be borne by 
the party requesting the classification of the cotton involved. 

Section 11. The chairman of the board which rendered the 
services, or the Chief of the Bureau of Markets, shall deliver bills 
to all persons from whom payment for fees or expenses on ac- 
count of such services shall be due. Such bills shall be ren- 
dered as soon as practicable after the fifteenth and the last day 
of each month for amounts due and unpaid on such date. When 
necessary in the discretion of the chairman of the board or the 
Chief of the Bureau of Markets, any bill may be rendered at an 
earlier date for any fees then due by the person to whom such 
bill shall be rendered. Payment of any such bill shall be made 
as soon as possible after the rendition thereof, but in any event 
not later than the expiration of two calendar weeks thereafter. 

Section 12. If requested by the chairman of the board of 
cotton examiners with which the classification request is required to 
be filed or by the Chief of the Bureau of Markets, the person 
from whom any pa3rtnent under this regulation may become due 
shall make an advance deposit to cover such payment in such 
amount as may be necessary in the judgment of the official re- 
questing the same. 

Section 13. Any payment or advance deposit under this 
regulation shall be by check, certified if required by the official 
rendering the bill, or by draft or post office or express money 
order, payable to the order of "Disbursing Clerk, Department 
of Agriculture," and shall not be made in cash. 



To be inserted at page 166 of the Book of By-Laws, Eules, etc., 
of the New Orleans Cotton Exchange — 1920 Edition. 

Amendment to Regulations of the Secretary of Agricult- 
ure under Section 5 of The United States Cotton 
Futures Act, as Amended March 4th, 1919; 
effective November 6th, 1919. 

In Eegulation 12, at the end thereof, insert a new section as 
follows : • 

Sec. 14. For the examination -of samples and the opinion re- 
garding the classification thereof in accordance with regulation 
13, the person requesting the same shall pay a fee of 30 cents for 
each bale of cotton involved. Payment of such fee shall be made 
in accordance with Section 13 of this regulation to such board of 
cotton examiners before the issuance of its opinion. 



•<* 



HPN^Wpp^p^- ■ ■ * ' W h -IK r» 



f -vA^ou. .^^ TllOtja v^^ SB 



To be inscrtod at page lG(i ul' tlie B..ok n[ By-Lnw=. Eules, 
the New Orleans Cotton Exchange— 1920 Edition. 



sideration tlie advisnbility of temlering the same ior delivery ou a 
Section 5 contract, but before finnlly determining his course of 
action desires the opinion of a board of cotton examiners as to the 
classification of samples of such cotton, the procedure shall be as 
outlined in this regulation. The fees for such service shall he paid 
in accordance witii Section 14 ot Regulation 12. 

Sec. 2. The owner of the cotton shall, unless ami until other- 
wise directed by the Chief of the Bureau nf ^Markets, file his re- 
quest for an opinion as to the clabsification of such samples with 
the board of cotton examiners at the place where the exchange 
is located under the rules of which it is contemplated that such 
tender may be made. In order to relieve the boards of duplicated 
or unnecessary labor, no other i'(;quest for the classification of 
samples of the same cotton ^hall he fil.-d with either ttie same or a 
different board, and whenever thr Chief -.f the Bureau of IMarkets 
shall find it necessary to reduce the .mn.uni i.f work imposed upon 
any board under this reguhitum any iei|u<'r.l and samples shall be 
filed with or transferred to another hoard in aceordance with his 
directions. 

Siec. 3. The request shall l)r in such form as may be prescribed 
for the purpose by liic Cliicf ul (he iluieau of Markets. The request 

may be withdr.nu, ^^ (he 'ipph. at auy time before the ex- 

aminatiun of tbi' -mii|iIi'- Ii< \\\-- linai'd of cottou examiners has 

board or the Chief of the Bureau of ]\Iarkets fnr uoii-eompliance 
by the owner of the cotton with these regulations or when such 
request sliall appear to have been filed without good cause. 

Sec. 4. Tlie owner of t!ie cotton «hall cause to be drawn one 
sample from the top side of e;ti h luh ;ui(l nni' fmm the bottom 
side. Each sueh sauipie sh.ill uei-li rmi le~, ilian two ounces, the 

gether, with a coupon or other written meiuis of identification be- 
tween them. The head of the bale shall be properly inspected and 
any conditions not fully indicated by the samples shall he speci- 
fied in a writteu memorandum which shall accompany the samples 
tothcbn;,,-d..f,nti(m.A-aniiners. 

Sec. r,. All -m li simples shall he enclosed in one or more 
wrappers, which shall be labeled or marked or both I" =ueli imii-- 
88 to show the name and address of the owner, the lot number or 
marks if any, the number of bales represented by the samples con- 
tained in each wrapper, and sueh other information as may be 
necessary in accordance with the instructions of the chairman of 
the board of cotton examiners to which the samples are to be de- 
livered, or of the Chief of the Bureau of Markets. Each sample 
of sandy or dusty cotton shall be enclosed in a separate wrapper. 

Sec. 6. The owner of the cotton shall at his own expense, cause 
such samples to be delivered at the classification room of the board 
of cotton examiners with which his request is filed, or at sucli 
other place as may be designated for the purpose by the chairman of 
the board or the Chief of the Bureau of Markets. If requested by 
such owner, the samples shall be returned to him at his expense 
■when the opinion of the board as to the classification thereof is 
sent to him or when his request for sueh classification is withdrawn 
or rejected; otherwise such samples shall be disposed of in accord- 
ance with Section 8 of Regulation 12. 

Sbc. 7. The examination of samples pursuant to this regulation 
shall not be allowed to interfere with the regular performance by a 
board of cotton examiners of other duties imposed upon it by these 
regnlations. 

Sbc. 8. When the examination of any lot of samples shall have 
been completed by a board of cotton examiners pursuant to this 
regulation, the chairman of such board shall send to the person 
who requested the same the opinion of such board as to the classi- 
cation of such samples, in a written form prescribed for the pur- 
pose by the Chief of the Bureau of Markets. Such opinion shall 
apply only to the samples described therein and shall not be deemed 
to be a valid cotton class certificate for the purpose of delivery of 
such cotton on future contracts, nor shall the submission of such 
samples in accordance with this regulation in any way relieve the 
jowner of such cotton from compliance with the Act and with 
regulations other than this regulation. 



To be inserted at page 166 of the Book of By-Laws, Rules, etc., 
of the New Orleans Cotton Exchange — 1920 Edition. 

Regulation 13. Preliminary Informal Sample 
Classification. 

Section 1. Whenever the owner of anv cotton has nnrlpT' co-n- 



wrappers, which snali be laoeiea or inarKeu or uum i- 



Appendix • 167 

UOTTED STATES* 

COTTON FUTUEES ACT 

WITH AMEN-DMENTS TO MARCH 4, 1919. 

(The amendments of March 4, 1919 expressed in italics) 

UNITED STATES COTTON FUTUHES ACT 
AS AMENDED MARCH 4, 1919 

"That this Act shall be known by the short title of the TJnited 
States Cotton Futures Act/ 

"Section 2. That, for the purposes of this Act, the term ^con- 
tract of sale' shall be held to include sales, agreements of sale, 
and agreements to sell. That the word ^person', wherever used 
in this Act, shall be construed to import the plural or singular, 
as the case demands^ and shall include individuals, associations, 
partnerships, and corporations. When construing and enforcing 
the provisions of this Act, the act, omission, or failure of any 
official, agent, or other person acting for or employed by any as- 
sociation, partnership, or corporation within the scope of his 
emplo3rinent or office, shall, in every case, also be deemed the act, 
omission, or failure of such association, partnership, or corpora- 
tion as well as that of the person. 

"Sectio?^ 3. That upon each contract of sale of any cotton, for 
future delivery made at, on, or in any exchange, board of trade, 
or similar institution or place of business, there is hereby levied 
a tax in the nature of an excise of 2 cents for each pound of cot- 
ton involved in any such contract. 

"Section 4. That each contract of sale of cotton for future 
delivery mentioned in section three of this Act shall be in writ- 
ting plainly stating, or evidenced by written memorandum show- 
ing, the terms of such contract, including the quantity of the 
cotton involved and the names and adresses of the seller and 
buyer in such contract, and shall be signed by the party to be 
charged, or by his agent in his behalf. If the contract or memo- 
randum specify in bales the quantity of the cotton involved, 



168 • Appendix 

without giving the weight, each bale shall, for the purposes of this 
Act, be deemed to weigh five hundred pounds. 

"Section 5. That no tax shall be levied under this Act on 
any contract of sale mentioned in section three hereof if the con- 
tract comply with each of the following conditions : 

"First. Conform to the requirements of section four of, and 
the rules and regulations made pursuant to, this Act. 

^'Second. Specify the basis grade for the cotton involved 
in the contract, which shall be one of the grades for which stan- 
dards are established by the Secretary of Agriculture, except 
grades prohibited from being delivered on a contract made 
under this section by the fifth subdivision of this sec- 
tion, the price per pound at which the cotton of such basis grade 
is contracted to be bought or sold, the date when the purchase 
or sale was made, and the month or months in which the con- 
tract is to be fulfilled or settled: Provided, That middling 
shall be deemed the basis grade incorporated into the contract if no 
other grade be specified either in the contract or in the memorandum 
evidencing the same. 

''Third. Provide that the cotton dealt with therein or deliv- 
ered thereunder shall be of or within the grades for which stan- 
dards are established by the Secretary of Agriculture except grades 
prohibited from being delivered on a contract made under this 
section by the fifth subdi\dsion of this section and no other grade 
or grades. 

''Fourth. Provide that in case cotton of grade other than 
the basis grade be tendered or delivered in settlement of such 
contract, the differences above or below the contract price which 
the receiver shall pay for such grades other than the basis grade 
shall be the actual commercial differences, determined as herein- 
after provided. 

"Fifth. Provide that cotton that, because of the presence of 
extraneous matter of any character, or irregularities or defects is 
reduced in value below that of low rmddling, or cotton that is be- 
low thQ grade of low middling, or, if tinged, cotton that is below 
the grade of strict middling, or, if yellow stained, cotton that is 
below the grade of good middling, the grades mentioned being 
of the official cotton standards of the United States, or cotton 
that is less than seven-eights of an inch in length of staple, or 



Appendix 169 

cotton of perished staple or of immature staph or cotton that is 
'gin cut' or reginned, or cotton that is 'repfiched' or 'false packed' 
or 'mixed packed' or 'water packed', shall not he delivered on, 
under, or in settlement of such contract." 

Sixth. Provide that all tenders of cotton under such contract 
shall be the full number of bales involved therein, except that 
such variations of the number of bales may be permitted as is neces- 
sary to bring the total weight of the cotton tendered within the 
provisions of the contract as to weight ; that, on the fifth business 
day, prior to delivery, the person making the tender shall give 
to the person receiving the same written notice of the date of 
delivery, and that, on or prior to the date so fixed for deliv^ery, 
and in advance of final settlement of the contract, the person 
making the tender shall furnish to the person receiving the same 
a written notice or certificate stating the grade of each indi- 
vidual bale to be delivered and, by means of marks or num- 
bers, identifying each bale with its grade. 

"Seventh. Provide that all tenders of cotton and settlements 
therefor under such contract shall he in accordance with the classi- 
fication thereof miade under the regulations of the Secretary of 
Agricultu/re hy such officer or officers of the Government as shall 
he designated for the purpose, and the costs of such clasification 
shall he fixed, assessed, collected, and paid as provided in such 
regulations. All moneys collected as such costs may he used as 
a revolving fund for carrying out the purposes of this subdivision, 
and section ninteen of this act is amended accordingly. '' 

The provisions of the third, fourth, fifth, sixth, and seventh 
subdivision of tliis section shall be deemed fully incorporated in- 
to any such contract if there be written or printed thereon, or 
on the memorandum evidencing the same, at or prior to the time 
the same is signed, the phrase ''Subject to United States cotton 
futures Act, section five/ 

"The Secretary of Agriculture is authorized to prescribe regur 
lations for carrying out the purposes of the seventh subdivision 
of this section, and the certificates of the officers Of the Govern- 
ment as to the classification of any cotton for the purposes of said 
subdivision shall he accepted in the courts of the United States 
in all suits between the parties to such contract, or their privies. 



170 Appendix 

as prima facie evidence of the true classification of the cotton in- 
volved/' 

"Section 6. That for the purposes of section five of this Act 
the differences above or below the contract price which the re- 
ceiver shall pay for cotton of grades above or below the basis grade 
in the settlement of a contract of sale for the future delivery of 
cotton shall be determined by the actual commercial differences 
in value thereof upon the sixth business day prior to the day 
fixed, in accordance with the sixth subdivision of section five, 
for the delivery of cotton on the contract, established by the sale 
of spot cotton in the market where the future transaction in- 
volved occurs and is consummated if such market be a bona fide 
spot market; and in the event there be no bona fide market at or 
in the place in which such future transaction occurs, then, and 
in that case, the said differences above or below the contract 
price which the receiver shall pay for cotton above or below the 
basis grade shall be determined by the average actual commercial 
differences in value thereof, upon the sixth business day prior 
to the day fixed, in accordance with the sixth subdivision of sec- 
tion five, for the delivery of cotton on the contract, in the spot 
markets of not less than five places designated for the purpose 
from time to time by the Secretary of Agriculture, as such values 
were established by the sales of spot cotton, in such designated 
five or more markets: Provided^ That for the purposes of this 
section such values in the said spot markets be based upon the 
standards for grades of cotton established by the Secretary of 
Agriculture: And provided further. That whenever the value of 
one grade is to be determined from the sale or sales of spot 
cotton of another grade or grades, such value shall be fixed in ac- 
cordance with rules and regulations which shall be prescribed for 
the purpose by the Secretary of Agriculture. 

Section 6A. That no tax shall be levied under this Act on any 
contract of sale mentioned in section three hereof if the con- 
tract provide that, in case cotton of grade or grades other than 
the basis grade specified in the contract shall be tendered in per- 
formance of the contract, the parties to such contract may agree, 
at the time of the tender, as to the price of the grade or grades 
so tendered, and that if they shall not then agree as to such price, 
then, and in that event, the buyer of said contract shall have the 



Appendix 171 

right to demand the specific fulfillment of such contract by the 
actual delivery of cotton of the basis grade named therein and 
at the price specified for such basis grade in said contract, and 
if the contract also comply with all the terms and conditions of 
section five hereof not inconsistent with this section: Provided, 
That nothing in this section shall be so construed as to relieve 
from the tax levied by section three of this Act any contract 
in which, or in the settlement of or in respect to which, any 
device or arrangement whatever is resorted to, or any agreement 
is made, for the determination or adjustment of the price of the 
grade or grades tendered other than the basis grade specified in the 
contract by any ^fixed difference' system, or by arbitration, or by any 
other method not provided for by this Act. 

Contracts made in compliance with this section shall be 
known as 'Section six A Contracts/ The provisions of this sec- 
tion shall be deemed fully incorporated into any such contract 
if there be written or printed thereon, or on the memorandum 
evidencing the same, at or prior to the time the same is signed, the 
phrase ^Subject to United States cotton futures Act, section 6 A/ 

Section ten of this Act shall not be construed to apply to 
any contract of sale made in compliance with section six A hereof. 

Section 7. That for the purposes of this Act the only 
markets which shall be considered bona fide spot markets shall 
be those which the Secretary of Agriculture shall, from time to 
time, after investigation, determine and designate to be such, 
and of which he shall give public notice. 

Sectiojt 8. That in determining, pursuant to the provisions 
of this Act, what markets are bona fide spot markets, the Secretary 
of Agriculture is directed to consider only markets in which spot 
cotton is sold in such volume and under such conditions as cus- 
tomarily to reflect accurately the value of middling cotton and 
the differences between the prices or values of middling cotton 
and of other grades of cotton for which standards shall have been 
established by the Secretary of Agriculture: Provided, That if 
there be not sufficient places, in the markets of which are made 
bona fide sales of spot cotton of grades for which standards are 
established by the Secretary of Agriculture, to enable him to 
designate at least five spot markets in accordance with section 
six of this Act, he shall, from data as to spot sales collected by 



172 Appendix 

him, make rules and regulations for determining the actual com- 
mercial differences in the value of spot cotton of the grades estab- 
lished by him as reflected by bona fide sales of spot cotton, of the 
same or different grades, in the markets selected and designated 
by him, from time to time, for that purpose, and in that event, 
'differences in value of cotton of various grades involved in con- 
tracts made pursuant to section five of this Act shall be deter- 
Hiined in compliance with such rules and regulations. 

Provided further, That it shall he the duty of any person en- 
gaged in the business of dealing in cotton, ivhen requested by the 
Secretary of Agriculture or any agent acting under his instructions, 
to answer correctly to the best of his hnowledge, under oath or other- 
wise, all questions touching his knowledge of the number of bales, 
the classification, the price or bona fide price offered, and other 
terms of purcliase or sale, of any cotton involved in any transaction 
participated in by him, or to produce all books, letters, papers or docu- 
ments in his 'possession or under his control relating to such matter. 
Any such person who shall, within a reasonable time prescribed by the 
Secretary of Agriculture or such agent, wilfully fail or refuse to 
answer such questions or to produce such books, letters, papers or 
documents, or who slmll wilfully give any answer that is false or 
misleading, shall be guilty of a misdemeanor, and upon conviction 
thereof shall be punished by a fine not exceeding $500." 

"Section 9. That the Secretary of Agriculture is authorized, 
from time to time, to establish and promulgate standards of cotton 
by which its quality or value may be judged or determined, in- 
cluding its grade, length of staple, strength of staple, color, and 
such other qualities, properties, and conditions as may be standard- 
ized in practical form, which, for the purposes of this Act, shall be 
known as the "Official cotton standards of the United States," and 
to adopt, change, or replace the standard for any grade of cotton 
established under the Act making appropriations for the De- 
partment of Agriculture for the fiscal year ending June thir- 
tieth, ninteen hundred and nine (Thirty-fifth Statutes at Large, 
page two hundred and fifty-one), and Acts supplementary there- 
to : Provided, That any standard of cotton established and 
promulgated under this Act by the Secretary of Agriculture shall 
not be changed or replaced within a period less than one year 
irom and after the date of the promulgation thereof by the Sec- 



Appexdix 173 

retary of Agriculture: Provided further^ That^, subsequent to six 
months after the date section three of this Act becomes effective, 
no change or replacement of any standard of any cotton estab- 
lished and promidgated under this Act by the Secretary of Agri- 
culture shall become effective until after one year's public notice 
thereof^ which notice shall specify the date when the same is to 
become effective. The Secretary of Agriculture is authorized 
and directed to prepare practical forms of the official cotton stand- 
ards which shall be established by him, and to furnish such 
practical forms from time to time, upon request, to any per- 
son, the cost thereof, as determined by the Secretary of Agri- 
culture, to be paid by the person requesting the same, and to 
certify such practical forms under the seal of the Department 
of Agriculture and under the signature of the said Secretary, 
thereto affixed by himself or by some official or employee of the 
Department of Agriculture thereunto duly authorized by the said 
Secretary. 

"Sectioj^ 10. That no tax shall be levied under this Act 
on any contract of sale mentioned in section three hereof, if the 
contract comply with each of the following conditions : 

"First. Conform to the rules and regulations made pursuant 
to this Act. 

''Second. Specify the grade, type, sample, or description of 
the cotton involved in the contract, the price per pound at which 
such cotton is contracted to be bought or sold, the date of the 
purchase or sale, and the time when shipment or delivery of such 
cotton is to be made. 

"Third. Provide that cotton of or within the grade or of 
the type, or according to the sample or description, specified in 
the contract shall be delivered thereunder, and that no cotton 
which does not conform to the type, sample, or description, or 
which is not of or within the grade specified in the contract shall 
be tendered or delivered thereunder. 

''Fourth. Provide that the delivery of cotton under the con- 
tract shall not be effected by means of ''set-off^ or 'ring' settle- 
ments, but only by the actual transfer of the specified cotton 
mentioned in the contract. 

"The provisions of the first, third, and fourth subdivisions 
of this section shall be deemed fully incorporated into any such 



174 Appendix 

contract if there be written or printed thereon, or on the docn-' 
ment or memorandum evidencing the same, at or prior to the 
time the same is entered into, the words ^Subject to United States 
cotton futures Act, section ten.' 

"This Act shall not be construed to impose a tax on any sale 
of spot cotton. 

^^his section shall not be construed to apply to any con- 
tract of sale made in compliance with section five of this Act. 

"Section 11. That the tax imposed by section three of this 
Act shall be paid by the seller of the cotton involved in the con- 
tract of sale, by means of stamps which shall be affixed to such 
contracts, or to the memoranda evidencing the same, and can- 
celed in compliance with rules and regulations which shall be 
prescribed by the Secretary of the Treasury. 

"Section" 12. That no contract of sale of cotton for future 
delivery mentioned in section three of this Act which does not 
conform to the requirements of the section four hereof and has 
not the necessary stamps affixed thereto as required by the sec- 
tion eleven hereof shall be enforceable in any court of the United 
States by, or on behalf of, any party to such contract or his 
privies. 

"Section 13. That the Secretary of the Treasury is author- 
ized to make and promulgate such rules and regulations as he 
may deem necessary to collect the tax imposed by this Act and 
otherwise to enforce its provisions. Further to effect this pur- 
pose, he shall require all persons coming within its provisions 
to keep such records and statements of account, and may re- 
quir such persons to make such returns verified under oath other- 
wise, as will fully and correctly disclose all transactions men- 
tioned in section three of this Act, including the making, exe- 
cution, settlement, and fulfillment thereof; he may require all 
persons who act in the capactiy of a clearing house, clearing 
association, or similar institution for the purpose of clearing, 
settling, or adjusting transactions mentioned in section three of 
this Act to keep such records and to make such returns as will 
fully and correctly disclose all facts in their possession relating 
to such transactions; and he may appoint agents to conduct the 
inspection necessary to collect said tax and otherwise to enforce 
this Act and all rules and regulations made by him in pursuance 



Appendix 175 

hereof, and may fix the compensation of such agents. The pro- 
visions of the internal-revenue laws of the United States, so far 
as applicable, including sections thirty-one hundred and seventy- 
three, thirty-one hundred and seventy-four and thirty-one hundred 
and seventy-five of the Eevised Statutes, as amended, are hereby 
extended, and made to apply, to this Act. 

"Section 14. That any person liable to the payment of any 
tax imposed by this Act who fails to pay, or evades or attempts to 
evade the payment of such tax, and any person who otherwise 
violates any provision of this Act, or, any rule or regulation made 
in pursuance hereof, shall be deemed guilty of a misdemeanor, 
and, upon conviction therefor, shall be fined not less than $100 
nor more than $20,000 in the discretion of the court; and, in 
case of natural persons, may, in addition, be punished by im- 
prisonment for not less than sixty days nor more than three 
years, in the discretion of the court. 

"Section 15. That in addition to the foregoing punishment 
there is hereby imposed, on account of each violation of this Act, 
a penalty of $2,000, to be recovered in an action founded on this 
Act in the name of the United States as plaintiff, and when so 
recovered one-half of said amount shall be paid over to the per- 
son giving the information upon which such recovery was based. 
It shall be the duty of the United States attorneys, to whom 
satisfactory evidence of violations of this Act is furnished, to 
institute and prosecute actions for the recovery of the penalties pre- 
scribed by this section. 

"Section 16. That no person whose evidence is deemed 
material by the officer prosecuting on behalf of the United States 
in any case brought under any provision of this Act shall with- 
hold his testimony because of complicity by him in any violation 
of this Act or of any regulation made pursuant to th*is Act, but 
any such person called by such officer who testifies in such case shall 
be exempt from prosecution for any offense to which his testimony 
relates. 

"Section 17. That the payment of any tax levied by this 
Act shall not exempt any person from any penalty or punish- 
ment now or hereafter provided by the laws of any State for 
entering into contracts of sale of cotton for future delivery, nor 
shall the payment of any tax imposed by this Act be held to pro- 



176 Appendix 

liibit any State or municipality from imposing a tax on the same 
transaction. 

"Section 18. That there is hereby appropriated, out of any 
moneys in the Treasury not otherwise appropriated for the fiscal 
year ending June thirtieth, ninteen hundred and sixteen, the un- 
expended balance of the sum appropriated by the Act of March 
fourth, nineteen hundred and fifteen (Thirty-eighth Statutes at 
Large, page one thousand and seventeen), for '^collecting the 
cotton futures tax,^ or so much thereof as may be necessary, to 
enable the Secretary of the Treasury to carry out the provisions 
of this Act and any duties remaining to be performed by him un- 
der the United States cotton futures Act of August eighteenth, 
nineteen hundred and fourteen (Thirty-eighth Statutes at Large, 
page six hundred and ninty-three) . 

"Section 19. That there are hereby appropriated out of 
any moneys in the Treasury not otherwise appropriated, available 
until expended, the unexpended balance of the sum of $150,000 
appropriated by section twenty of the said Act of August eigh- 
teenth, nineteen hundred and fourteen, and for the fiscal year end- 
ing June thirtieth, nineteen hundred and sixteen, the unexpended 
balance of the sum of $75,000 appropriated for the 'Enforcement of 
the United States cotton futures Act' by the Act making appropria- 
tions for the Department of Agriculture for the fiscal year ending 
June thirtieth, nineteen hundred and sixteen (Thirty-eighth Stat- 
utes at Large, page one thousand and eighty-six) , or so much of each 
of said unexpended balances as may be necessary, to be used by the 
Secretary of Agriculture for the same purposes, in carrying out the 
provisions of this Act, as those for which said sums, respectively, 
were originally appropriated, and to enable the Secretary of Agri- 
culture to carry out any duties remaining to be performed by him 
under the said Act of August eighteenth, nineteen hundred and 
fourteen. The Secretary of Agriculture is hereby directed to 
publish from time to time the results of investigations made in 
pursuance of this Act. All sums collected by the Secretary of 
Agriculture as costs under section five, or for furnishing practi- 
cal forms under section nine, of this Act, shall be deposited and 
covered into the Treasury as miscellaneous receipts. 

"Section 20. That sections nine, eighteen, and nineteen 
of this Act and all provisions of this Act authorizing rules and 



Appendix 177 

regulations to be prescribed shall be effective immediately. All 
other sections of this Act shall become and be effective on and 
after the first day of the calendar month next succeeding the 
date of the passage of this Act : Provided, That nothing in this Act 
be construed to apply to any contract of sale of any cotton for 
future delivery mentioned in section three of this Act which shall 
have been made prior to the first day of the calendar month next 
succeeding the date of the passage of this Act. 

"Section 21. That the Act entitled *An Act to tax the 
privilege of dealing on exchanges, boards of trade, and similar 
places in contracts of sale of cotton for future delivery, and for 
other purposes/ approved August eighteenth, nineteen hundred 
and fourteen (Thirt3^-eighth Statutes at Large, page six hundred 
and ninety-three)^ is hereby repealed, effective on and after the 
first day of the calendar month next succeeding the date of the 
passage of this act: Provided, That nothing in this Act shall be 
construed to effect any right or privilege accrued, any penalty 
or liability incurred, or any proceeding commenced under said 
Act of August eighteenth, nineteen hundred and fourteen, or to 
diminish any authority conferred by said Act on any official of the 
United States necessary to enable him to carry out any duties 
remaining to be performed by him under the said Act, or to 
impair the effect of the findings of the Secretary of Agriculture 
upon any dispute referred to him under said Act, or to effect any 
right in respect to, or arising out of any contract mentioned 
in section three of said Act, made on, or subsequent to February 
eighteenth, nineteen hundred and fifteen, and prior to the first 
day of the calendar month next succeeding the date of the pas- 
sage of this act, but so far as concerns any such contract said 
Act of August eighteenth, nineteen hundred and fourteen, shall 
remain in force with the same effect as if this Act had not been 
passed. 

"Section 22. That if any clause, sentence, paragraph, or 
part of this Act shall for any reason be adjudged by any court of 
competent jurisdiction to be invalid, such judgment shall not ef- 
fect, impair, or invalidate the remainder thereof, but shall be 
confined in its operation to the clause, sentence, paragraph, or 
part thereof directly involved in the controversy in which such 
judgment shall have been rendered." 



COTTON SEED AND COTTON 
SEED PRODUCT RULES 



181 



RULES GOVERNING BUSINESS IN COTTON SEED 
AND COTTON SEED PRODUCTS 

COMMITTEE OX COTTON SEED AND COTTON SEED 
PEODUCTS. 

ITS DUTIES AXD FUNCTIONS. 

EuLE 1. There shall be a committee of five members of the 
New Orleans Cotton Exchange, to be appointed by the Board of 
Directors, and subject thereto, who shall have general charge of all 
matters relating to the business in cotton seed and cotton seed 
products. 

It shall be the duty of said Committee: 

(a) To recommend from time to time to the Board of 
Directors such measures as they may deem necessary for the wel- 
fare and promotion of the business in cotton seed and cotton seed 
products. 

AEBITEATIONS. 

(bl) It shall be the duty of said Committee to serve as an 
Arbitration Committee, which shall take cognizance of and decide 
all questions or differences referred to it relating to cotton seed or 
cotton seed products, and its decisions as arbitrators shall be final, 
whether the parties be members of the New Orleans Cotton Ex- 
change or non-members, who have agreed in writing to submit to 
such decisions. 

(b2) When serving as arbitrators, or otherwise, three (3) of 
said Committee shall constitute a quorum. 

(b3) No member of the Committee shall serve as an arbi- 
trator who is or may be directly or indirectly interested in the 
matter at issue. 

(b4) The Committee shall appoint one or more inspectors to 
carry out its instructions. 



182 

(b5) Each arbitrator acting on any one case shall be paid 
Five ($5) Dollars for such case, and inspection fees shall be allowed 
as follows: 

On Oil — Two and one-half cents (2%c) per barrel. 

On Cake and Meal — Two Dollars ($2) per car for one or two 
cars; One Dollar ($1) per car from three to five cars, inclusive, and 
Fifty Cents (50c) per car for each and every car in excess of five 
cars. 

On Cake and Meal by Boat — The fees shall be in the same pro- 
portion as allowed for inspection by cars, and twenty tons of cake 
or meal by boat shall be considered as equivalent to a car. 

The arbitrators, in their award, shall decide by whom the ex- 
penses of arbitration shall be paid. 

PRIVATE SETTLEMENTS. 

(b6) Nothing in these Rules shall be construed as preventing 
private settlements by mutual agreement of both parties to a trans- 
action. 

QUOTATIONS. 

(c) It shall be the duty of the Committee on Cotton Seed and 
Cotton Seed Products to furnish at such times as it may deem 
necessary and proper, quotations of cotton seed, cotton seed meal, 
cake, oil and linters, which shall be posted in the Exchange rooms. 

GENERAL RULES. 

Rule 2. All offers, sales or purchases of cotton seed oil (or 
other cotton seed products) shall be understood, unless specified to 
the contrary, to be F. 0. B. cars at the mill, and on the basis of 
prime quality. Unless specifically stated, oil shall be considered as 
sold loose, and the buyer shall furnish tank cars. 

Rule 3. All sales of cotton seed products, unless otherwise 
specified, shall be for cash, payment to be made by resident buyers, 
on presentation of invoice with railroad ticket signed, or bill of 



183 

lading attached, showing delivery of goods to the carrier, in good 
order. 

EuLE 4. Payment of non-resident buyers shall be by sight or 
demand draft, with bill of lading attached, showing delivery of 
goods to the carrier in good order, unless otherwise agreed. Ex- 
change not to exceed one-fourth of 1 per cent, on F. 0. B. mill 
purchases. 

Rule 5. When goods are delivered to the carrier as agreed, 
whether in whole or partial completion of trade, payment for same 
shall become due, if presented during banking hours, and all risks 
belong to the buyer. 

EuLE 6. On all sales of cotton seed products to or through 
regular brokers, the seller shall pay the brokerage unless otherwise 
specially agreed. 

EuLE 7. On all trades by telegraph, day messages requiring 
day answer shall be open until 12 midnight of the day on which 
sent. Night messages shall be open till noon following the night 
on which sent. The time when telegrams are filed in telegraph 
office sending same, to govern, and this rule to apply only when 
no specific time is stated in the original offer. 

EuLE 8. Eules governing trades in cotton seed products are 
only applicable in the absence of a specific written contract stating 
special conditions, but either party to a trade may demand a formal 
written or printed contract as soon as the trade is completed. Such 
contracts, unless specially excepted, being subject to all the Eules 
of the New Orleans Cotton Exchange. 

EuLE 9. All sales in cotton seed products shall be either im- 
mediate, prompt, or specified dates of delivery. 

(1) Immediate shall be within five working days. 

(2) Prompt shall be within ten working days. 

(3) Specified dates according to contract. 

In all cases the bill of lading shall be evidence of date of ship- 
ment from country mills. 



184 
BUYER'S TANKS. 

Rule 10. In case the buyer furnishes tank cars, shipments of 
same by buyers shall be as follows: 

(1) Immediate shipment, within five days. 

(2) Prompt shipment, within ten days. 

(3) Specified shipment shall be in such time that, under 
ordinary course of transportation, cars shall reach seller in time to 
arllow him to make delivery as per contract. 

Rule 11. If more than one tank car is to be furnished for 
the same delivery, under one transaction, the first car only shall be 
shipped as above, and the balance shall follow as rapidly as the 
seller can, with certainty, load the same. 

Seller shall, in all cases, load cars within forty-eight hours of 
arrival at destination. 

TIME CONTRACTS. 

Rule 12. When a time contract is made for any one of the 
products of a mill, with a date specified for the expiration, and the 
quantity or quality, or both, are not stipulated, it is understood to 
be for all the possible output of the particular products named, that 
can be made from seed worked up to midnight of the last day named 
in the contract; the whole to be put in proper condition for ship- 
ment as speedily as possible after the date of expiration of contract. 

Rule 13. In all time contracts it is understood that the mill 
is to run to its full capacity and to use every means known to pro- 
duce goods of the quality stipulated when so named, and if failure 
to do either or both of these appears intentional, then both actual 
and consequential damages may be awarded by the Arbitration 
Committee. 

In case mill burns, the contract is void, except in regard to 
goods on hand, in warehouse, etc. 



185 

CTLAIMS. 

EuLE 14. All claims against shipments of cotton seed pro- 
ducts must be made within ten days after their arrival at American 
point of destination, except the products for export, in which case 
thirty days shall be allowed. 

Rule 15. All sales made F. 0. B. New Orleans shall be con- 
sidered closed and seller free from all liability upon furnishing to 
buyer clean receipts from vessel, buyer having had the privilege of 
inspection before loading, or, if buyer accepts goods, delivery shall 
be considered as having been made. 

On C. I. E., or delivery contracts to exporters, no claim from 
any foreign market will be entertained without the proper samples 
of the goods are taken and preserved previous to their leaving the 
American shore, unless samples are drawn before removal from 
foreign dock, and such samples are taken in accordance with the 
Rules of the Exchange or Board of Trade of the port of delivery. 

Rule 16. All claims to brought before the Committee of 
the New Orleans Cotton Exchange must be accompanied by an 
affidavit from a reliable party, substantially in the following form, 
describing and identifying the samples submitted as taken from and 
fairly representing the entire shipment. 

FORM OF CLAIM. 
EULE 17. 

I, the undersigned, do hereby make affidavit that I have drawn 

fair and true samples from * 

package of being not less 

than per cent, of the entire number of 

packages embraced in a shipment made by 

from , as evidenced 

by bill of lading dated and issued 

by 



186 

The samples were carefulh' taken so as to secure a fair repre- 
sentation of the contents of the individual package, and a true 
average of the quality of the entire shipment. 

I certify to the correctness of the samples, which are marked 

as follows : 

and which represent the shipment marked or identified as follows: 

or contained 

in 

Sworn to before me 

CEUDE COTTON" SEED OIL. 

MEASUREMENT. 

KuLE 18. A tank (tank car) of cotton seed oil for contract 
purposes shall be one hundred and sixty barrels. A barrel of 
oil, if sold loose, of fifty gallons. A gallon of oil is 71/2 pounds 
avoirdupois. 

EuLE 19. Crude cotton seed oil may be sold either loose or in 
barrels as agreed between seller and buyer. If in barrels, they shall 
be good, hardwood, iron-bound barrels, either new or second-hand, 
as may be agreed upon. Packages must be in good shipping order, 
and contain not less than 48 gallons each. On delivery of other 
than the above barrels, an allowance of fifty cents per barrel shall 
be made by seller. 

CLASSIFICATION. 

KuLE 20. Crude cotton seed oil shall be classed and graded as 
follows : Choice crude must be made from sound decorticated seed ; 
must be sweet in flavor and odor, light in color, free from water 
:and settlings, and test not over 1 per cent. F. F. A. ; shall produce, 
when properly refined, choice Summer Yellow Oil, at a loss in 
weight not exceeding 6 per cent, for Texas oil, and at a normal 
loss for oil from all other parts of the country. 



187 

EuLE 21. Prime Crude. — Crude cotton seed oil to pass as 
prime must be made from sound decorticated seed^ must be sweet 
in flavor and odor^ free from water and settlings, and must produce 
prime Summer Yellow grade, by the usual refining methods, with 
a normal loss in weight ; provided, the oil shall not be rejected for a 
nominal amount of settlings, but reasonable reduction shall be made 
in value for all such settlings in excess of ^ of 1 per cent. F. F. A., 
not to exceed 1% per cent. 

EuLE 22. Off Oil. — All oil, neither choice nor prime, shall be 
called "off'' oil and shall be sold by sample. 

EEFINED COTTON SEED OIL. 

EuLE 23. Eefined cotton seed oil shall be classed and graded 
as follows : Summer Yellow only being considered. 

EuLE 21. Choice. — Must be sweet in flavor and odor, prime 
in color, of light straw-color, clear and brilliant in appearance, 
free from moisture, and must bleach to a choice white. 

EuLE 25. Prime. — Must be clear, sweet in flavor and odor, 
and of yellow color, not reddish, free from water and settlings 
and of no deeper color than 35 yellow, 7.6 red on Lovebond's 
equivalent color scale. 

EuLE 26. Off. — To be classed as off refined. All oils having 
any objectionable flavor or odor. 

Off Yellow Oil. — To be of a yellow, and not a reddish color. 

SOAP STOCK. 

EuLE 27. All sales, unless otherwise agreed upon by buyer 
and seller, are sold on a basis of fifty per cent., fatty acid not to fall 
below forty per cent. If containing less than forty per cent, of 
fatty acid, soap stock shall not be considered merchantable. De- 
livery to be made in iron-bound, hardwood packages or tank cars. 



188 



COTTON SEED CAKE. 

EuLE 28. A ton of Cotton Seed Cake for export is 2,240 
pounds, "unless otherwise agreed. 

Rule 29. Cotton Seed Cake shall be graded and classed as 
follows : 

Choice Cake. — Must be hright yellow in color, sweet in odor, 
soft and friable in textnre, not burnt in cooking, without excess of 
hulls, and must produce, when properly ground, a bright meal of 
deep canary color and shall contain not less than 47 per cent of 
combined protein and fat. 

Rule 30. Prime Cake — Must be of good yellowish color, not 
brown or reddish, sweet in odor, firm, but not flinty in texture, free 
from excess of hulls, and must produce, when properly ground a 
prime meal and shall contain not less than 43 per cent of combined 
protein and fat. (See Rule 32.) 

Rule 31. .Off Cake — All grades of Cotton Seed Cake which 
are distinctly off in color, taste or odor, or cake which has been im- 
properly manufactured so as to incorporate in it a very large per- 
centage of lint or hulls, or to produce an exceedingly hard, flinty 
texture. 

Light yellow colored and dark greenish-yellow colored cake 
packed in same bags or included in one shipment, shall not be con- 
sidered as prime. 

Rule 32. Cotton Seed Cake, unless otherwise specified, shall 
be packed in good, strong, sound Dundee bags, either new or second- 
hand, at the option of the seller, unless specified in the contract. 
Packages must be well sewed and in good shipping order. 

COTTOI^ SEED MEAL. 

Rule 33. A ton of cotton seed meal for export is ^,240 
pounds, unless otherwise stated. A sack of cotton seed meal is 100 
pounds gross weight. 



189 

Cotton Seed Meal shall be classed and graded as follows: 

EuLE 34. Choice — Must be the product from choice cotton 
seed cake when finely ground; must be perfectly sound, sweet and 
light yellow color (canary), free from excess of lint and hulls and 
shall contain not less than 47 per cent of combined protein and 
fat. 

EuLE 35. Prime — Must be made from prime cake, finely 
ground, of sweet odor, reasonably bright in color, yellow, not brown 
or reddish, and free from excess of lint or hulls and shall contain 
not less than 43 per cent of combined protein and fat. 

EuLE 36. Off — Any Cotton Seed Meal which is distinctly de- 
ficient in any of the requirements for prime quality, either in color, 
odor, or texture, or all. 

EuLE 37. Cotton Seed Meal — Shall be packed in good, sound 
Cental or Laplata bags, either new or second-hand (except where 
otherwise stipulated for packages designed for export in kilo or 
other bags), 100 pounds weight, which must be well sewed and in 
good shipping order. 

COTTON SEED. 

EuLE 38. A ton of cotton seed is 2,000 pounds. A carload of 
cotton seed is fifteen tons. 

EuLE 39. Cotton seed shall be divided into two classes 
Prime seed and off seed. 

EuLE 40. Prime Seed — Shall be clean, dry, sound seed, free 
from dirt, trash and bolls. 

EuLE 41. Off Seed — Seed not coming up to the requirements 
of Prime Seed shall be considered Off Seed. Off or damaged seed 
shall be settled for on its merits and comparative value as against 
value of standard Prime Seed. 

EuLE 42. Delinted Seed— A ton for export is 2,240 pounds. 
The seed shall be properly delinted, sound, and made of prime seed; 
shall be packed in good, strong, sound bags. 



190 
EULES FOR EXPORT TRADE. 

Rule 43. All contracts of editon seed products shall be 
understood, unless specified to the contraiy, to be based upon ship- 
side delivery at railroad dock terminals with the payment against 
carrier's bill of lading. Cost of discharging cars, if not included 
in rate of freight, to be deducted from invoice. 

Rule 44. Contracts based on terms F. 0. B. steamer shall be 
construed as meaning payment against clean ship receipts. 

Rule 45. On all contracts made delivered ex-levee, ex-cars, 
shipside or F. 0. B. steamer, seller is responsible to buyer for 
weights at railroad dock terminals or discharging point, it being 
optional with buyer to have weights tested by public weigher, and 
should any deficiency be found, seller shall make such deficiency 
good and pay the expenses of re-weighing. Same to be done within 
t i]cr ( >) weather working days after unloading of cars. 

Rule 46. All claims on account of quality on shipments of 
cotton seed products must be made within thirty days of notice of 
arrival of cars. 

Rule 47. Unless mutually agreed upon, samples shall be drawn 
by the official Inspector of the New Orleans Cotton Exchange. 

Rule 48. In case shipments should not be up to contract 
quality, the buyer shall have the option of rejecting entirely or 
taking delivery at an allowance to be fixed by arbitration, but seller 
shall have the right to replace, provided this be done within forty- 
eight hours, failing which buyer shall have the privilege of replac- 
ing for account of the seller. 

Rule 49. Oil in barrels, if necessary, shall be coopered and 
weighed at port of loading at expense of seller. 

Rule 50. Barrels for export must not contain less than fifty 
gallons each. 



GENERAL RULES 



193 
GENERAL RULES 



FOEM OF SEAL. 



Rule 1. The corporate seal of this Exchange shall consist of 
the device of a bale of cotton bound with six hoops, and surrounded 
by the words, "New Orleans Cotton^ Exchange/' in a circle. 

MEMBERSHIP AND STOCK. 

Rule 2. Any member-elect or visiting member-elect failing 
to pay his dues, within ten days after official notification of his 
election, shall be considered as suspended until such time as he 
shall have paid them. 

An amount equal to the Initiation Fee must be deposited with 
the Treasurer of the Exchange by all applicants for membership at 
the time of making application. Should the application not be 
approved by the Committee on Membership or the Board of Direc- 
tors, or should the applicant not be elected, the amount so deposited 
shall be returned to the applicant. 

Applications not accompanied by deposit as above set forth 
will not be considered. 

In event of withdrawal by an applicant, after election, the 
amount deposited with the application shall be forfeited to the 
Exchange. 

Visiting members failing to pay the annual dues by or before 
the 25th of November shall be dropped from the Exchange list. 

Rule 3. Members in arrears are not allowed to vote. 

Rule 4. Section 1. Any partner of a deceased member, 
after being duly elected a member of the Exchange, will be admitted 
to the privileges thereof on payment of the initiation fee as pro- 
vided in the Constitution on signing the Constitution and procuring 
a share of stock in the Exchange, to be held in his own name, and 



194 

against the annual dues of the current 3^ear chargeable to him, will 
be entitled to a credit for the dues already paid for the unexpired 
portion of said current year by his deceased partner. 

Sec. 2. Any member failing to comply with the following re- 
quirements may, on recommendation of the Committee on Member- 
ship, be suspended b}^ the Board of Directors from membership of 
the Exchange: 

All members of the Exchange having general, special or any 
other kind of partners must file with the Superintendent a memor- 
andum thereof, together with a statement of their place or places 
of business. Xotices of subsequent changes in partnership or of 
discontinuance of partnership must be filed within five days with 
the Superintendent, and such notice shall be posted on the bulletin 
of the Exchange for ten days after the date of filing. 

The Superintendent, upon receipt of notification of the forma- 
tion of new partnerships or of changes in existing partnerships, 
shall submit the same to the Committee on Membership for its 
consideration and recommendations. 

Whenever it shall appear that a member has, or has formed, a 
partnership or established a branch office whereby the interests or 
good repute of the Exchange has suffered or may suffer, the Board 
of Directors may, on recommendation of the Committee on Mem- 
bership, require the immediate dissolution of such partnership or 
discontinuance of such branch office. 

EuLE 5. All withdrawals of members, whether by resignation, 
suspension or otherwise, must be promptly posted in the Exchange 
rooms; and when resignations are tendered either formally or by 
transfer of stock, the party so resigning shall not, pending action by 
the Board of Directors upon the resignation, be entitled to any of 
the rights or privileges of membership. 

EuLE 6. No employee of any local firm, or firm with an office 
in New Orleans, is eligible to represent any out-of-town member of 
the Exchange not a member of such firm, as power of attorney or 




■^Pi iH'^rnW m^ m 



M^^mti 



Xo. 16. 

AMENDMENT TO RULE 4 OF THE GENERAL RULES 
OF THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors/ August 3^ 1921; Posted 
August 3, 1921; effective August 13, 1921). 

Amend Eule -1, of the General Piules, (page 194—1920 Edition) 
by addition of the following as Section 5, viz: 

Sec. 5. Any member of this Exchange who becomes a member 
of or who transacts business directly or indirectly for himself or 
for any member of an exchange or Board of Trade or similar 
institution permitting contracts for future delivery of cotton in 
units of less than 100 bales, shall upon conviction thereof, be 
deemed to have committed an act or acts detrimental to the welfare 
of this Exchange; it being understood that the contracts above 
referred to are not to include contracts known as Free on Board 
Contracts or contracts of cotton '^to .arrive." 

The penalty for violating or evading or seeking, offering, pro- 
posing, promising or agreeing to violate or evade this rule in any 
way, shape or manner whatsoever, whether by an agreement, ar- 
rangement or understanding, expressed or implied, either directly 
or indirectly, in person or througli any firm or co-partnership of 
which a member may be or appear to be a partner or through any 
agent or agents, or otherwise, shall be, upon conviction : 

(a) For the first offense, suspension for a period of not less 
than six nor more than twelve months, the term of suspension to 
be fixed at the discretion of a majority of the Board of Directors 
present at a meeting thereof. 

(b) For the second offense, expulsion. 

Charges under this rule may be filed by any officer or member 
of this Exchanse. 



mjkikmmhtmKm^imt 



195 

.€lerk, on the floor of the Exchange, except on payment of dues as 
prescribed in Section 3 of Article 16 of the By-Laws. 

Powers of attorney given by members to their clerks, nnder 
Article 16 of the By-Laws, to visit the Exchange rooms during the 
absence or sickness of the member, shall not be recognized unless 
the person to whom same is given is of legal age. 

NOTICES AND VISITIXG CAEDS. 

EuLE 7. Xo notice shall be posted upon the Exchange boards 
-except by the Superintendent or by his assistants. 

EuLE 8. All writing or pencil-marking on the books or 
records of the Exchange, by members, or others not employed in 
ihe Superintendent's office, is positively prohibited. 

Xor shall articles of any kind, including cotton plants, bolls, 
specimens of crops, agricultural implements, models thereof, etc., 
etc., be introduced into or exhibited on the Exchange floor without 
ihe consent of the President. 

Documents not appertaining to Exchange matters shall not be 
•exposed in the rooms for signature without consent of the President. 

Members of the Exchange are prohibited from using the Ex- 
change office, except on official business with officers of the Ex- 
•change. 

EuLE 9. Employees in the Superintendent's office are not 
:allowed to furnish information from the Exchange boards to mem- 
hers through their clerks. 

EuLE 10. Visitors' tickets to the rooms of the Exchange, ex- 
cept as hereinafter provided for, shall be good for not more than 
ten days, and shall not be renewed except after an interval of sixty 
-days' absence from the city of the holders thereof. Cards of ad- 
mission for shipmasters may be extended ten daj^s at a time, for a 
period not exceeding thirty days, the extensions to be entered on 
the visitors' register. All cards must be issued from the Secre- 
tary's office, and only on request of a full member. 



196 

The names of all visitors to the Exchange shall be entere(5 
on the visitors' register. 

At the written request of ten members, the President shall 
revoke any visitor's card, but written notice thereof must be sent 
the party at whose request the card was issued, in order that he* 
may have an opportunity to withdraw same. 

Rule 11. The President is authorized to issue visitors' tickets 
to residents of the city, and to extend complimentary invitations 
to visit the Exchange at any time, to any person, and for any 
period he may deem proper. 

Rule 12. No cards of admission to the Exchange rooms shall 
be granted to applicants for membership or visiting membership 
during the pendency of their applications, unless specially issued 
by the President of the Exchange. 

STANDING COMMITTEES. 

Rule 13. The Board of Directors shall, in addition to the> 
committees provided for by Section 3 of Article 3 of the By-Laws,, 
appoint the following standing committees. 

A Committee on Insurance, to consist of five members of 
the Exchange, who shall be authorized to confer with committees of 
the Board of Underwriters, on matters relating to the insurance* 
of cotton in transit to this port, and, in conjunction with the^ 
former, to determine from time to time the valuation of cotton for- 
insurance. 

A Committee on .Supervision and Deliveries, to consist of the' 
President ex-officio, at least one member of the Board of Directors,, 
who shall be Chairman, and four members interested in the trade;. 

A Floor Committee, to consist of seven members, whose duty it 
shall be to maintain order on the floor of the Exchange, and to 
perform such other functions as are provided for in the Rules of 
order and the Future Contract Rules. 



197 

A Committee on Exchange Quotations, to consist of three 
members. 

A Committee on Protection of Shipping, to consist of seven 
members. 

A Committee on Rules, to consist of five members. 

A Committee on Futures, to consist of nine members. 

An Appeal Committee on Classification, to consist of seven 
members. 

A House Committee, subject to the Board of Directors, to con- 
sist of three (3) members, who shall have general charge of the 
Exchange rooms and make such changes and alterations as may be 
for the convenience and comfort of members, including rental and 
of allotment of rental booths and supervision of telephone booths, 
€tc., and other matters in reference to Exchange Eooms and offices, 
not in conflict with the duties of the Floor Committee, whose juris- 
diction " embraces maintenance of order and conduct of members 
under the rules. 

A Freight Dicsnmination Committee, to consist of eight mem- 
bers. 

A Weather Committee, to consist of three members, who shall 
report daily, in writing, the condition of the weather to govern de- 
liveries of cotton from depots. 

A Supervisory Committee, to consist of five members. 

The Committee on Information and Statistics shall act as 
Meteorological Committee, whose duty shall be to co-operate with 
the U. S. Weather Bureau, and who shall, from time to time, make 
such suggestions to the Board of Directors as ma)^, in their opinion, 
conduce towards perfecting the information obtained by the Ex- 
change in their department. 

A Gomrmttee on Commissions, to consist of five members, at 
least one of whom shall be a member of the Board of Directors and 
Chairman of the Committee. Said Committee to be charged with 
the consideration and decision of all questions that may arise under 



198 

the Commission Law, subject to approval of the Board of Directors. 
Said Committee to examine and present to the Committee on Mem- 
bership information of any violation of the Commission Law. 

A Committee on Legislation, to consist of four members, whose 
duties shall be to watch the interests of the Exchange in matters of 
legislation, either State or Federal. 

Sec. 2. A Committee shall be appointed by the Board of 
Directors to be styled the General Arbitration Committee, which 
shall have the settlement of all claims arising from transactions 
between members (subject only to the right of appeal to the General 
Appeal Committee, as hereinafter set forth), excepting such as are 
provided for in the first paragraph of Articles IX and XIV of the 
By-Laws, and such as may arise from questions of classification of 
cotton. 

All claims before said General Arbitration Committee and 
answers thereto shall be submitted in writing, and the opposite party 
shall have a reasonable time in which to make reply (not less than 
five or more than ten days), and both parties shall have the right 
to have summoned before the Committee such witnesses as they may 
desire to have examined in their behalf. It being provided that no 
claim shall be considered by said Committee unless notice in writing 
of such claim and of the intention to demand an arbitration thereon 
has been served by either party upon the opposite party or parties 
thereto within fifteen days from the discovery thereof. 

The decisions of said General Arbitration Committee shall be 
binding, subject only to an appeal to the General Appeal Com- 
mittee, which appeal shall be made within three (3) business days 
after notice has been received of such decision, accompanied by a 
certified copy of same. 

Each arbitrator acting on any one case shall be paid Five 
Dollars ($5) for such case, and the arbitrators in the award shall 
decide by whom the expenses of the arbitration shall be paid. 



^ 



No. 20 

AMENDMENT TO RULE 13 OF THE GENERAL 
RULES OF THE NEW ORLEANS 
COTTON EXCHANGE 

(Adopted by the Board of Directors December 20th^ 1921; Posted 
December 22nd, 1921; effective January 2nd, 1922) 

Amend Section 1 of Eiile 13 of the General Eules, page 198^, 
1920 Edition, by adding at the end thereof the following: 

A COMMITTEE ON AGEICULTUEE AND COTTON PEST 
MENACE, to consist of Nine (9) members, whose duty it shall 
be to confer with State and Federal authorities regarding agricul- 
tural matters and the menace of ravages of pests affecting cotton-. 



iiiimiiirt(i> 



w II ilOilii 



mmm- 



199 

Said General Arbitration Committee shall consist of seven 
members, a majority of whom shall constitute a quorum. 

Sec. 3. A General Appeal Committee shall be appointed by 
the Board of Directors, and shall consist of five (5) memberg of 
the Exchange, three (3) of whom shall constitute a quorum for the 
purpose of hearing and deciding such matters as may be submitted 
to it on appeal from decision of the General Arbitration Committee. 

All expenses attending such appeal, unless otherwise decided 
by said General Appeal Committee, shall be borne by the party 
whose claim differs most from the final award, including costs of 
arbitration appealed from, and a fee of Five Dollars ($5) for each 
member of said General Appeal Committee acting on such appeal. 

EuLE 14. The President is authorized to make such appoint- 
ments as may be necessary to create a quorum in any committee 
lacking such quorum by reason of the absence of members thereof 
from the city. 

The President is also authorized to fill temporary vacancies in 
any committee due to sickness, absence from the city or vacancies 
from any other cause. 

EuLE 15. Sec. 1. The Finance Committee shall, in making 
loans, stipulate that in case of the depreciation of collaterals they 
shall call for additional securities or money to make good the orig- 
inal margin, and, in case such additional margin is not furnished,, 
the loan shall be considered as matured, and the Treasurer shall be 
authorized to sell the securities in his hands and apply the proceeds: 
of same to the payment, in full or in part, of said loan. 

Sec. 2. The Chairman or Acting Chairman of the Finance 
Committee and the Treasurer or Acting Treasurer shall jointly have 
access to and control over the Bank Safes rented by this Exchange^ 
and whenever it shall be necessary to deposit securities or other 
valuables or papers belonging to or held by the Exchange in said 
Bank Safes, or to remove such securities or papers from said safes,, 



200 

it can only be done jointly by the persons above provided. No 
other parties shall under any circumstances have access to the Bank 
Safes rented by the Exchange. 

COMPOSITION OF COMMITTEE ON SPOT QUOTATIONS, 
QUOTATIONS OF SPOT MAEKET. 

KuLE 16. The Committee on Spot Quotations shall make up 
the official spot market of the Exchange daily, except on Saturdays, 
at 2 p. M., and on Saturdays at 11 A. m. 

The Committee on Spot Quotations shall quote the following 
grades and half grades : 

Standard Cotton; Full Grades: Low Ordinary, Ordinary, 
Good Ordinary, Low Middling, Middling, Good Middling, Middling 
Fair, and Fair. 

Half Grades: Strict Good Ordinary, Strict Low Middling, 
Strict Middling, Strict Good Middling, and Middling Fair to Fair. 

Said Committee on Spot Quotations shall include in their daily 
reports the differences in values of the grades enumerated above for 
Off Colored, Spotted, Yellow Light Tinged, Yellow Tinged, Blue 
Stained, Yellow Light Stained, and Yellow Stained. 

The Spot Quotation Committee shall state in their report that 
their quotations are based on the official Cotton Standards of the 
United States, and are for short staples or upland cotton. 

Information given by brokers or others of their daily purchases 
or sales shall be considered confidential insofar as the names of the 
parties thereto are concerned. 

EuLE 17. The statements of daily receipts of cotton at this 
port shall include all arrivals prior to 12 m., allowing one hour for 
the delivery of manifests of boats arriving prior to 12 m.; no boat 
shall be considered as having arrived until moored to the levee. 

EuLE 18. Section 1. Any member of the New Orleans 
Cotton Exchange who shall be interested in or associated in business 



201 

with, or who shall act as the representative of, or shall knowingly 
execute any order or orders for the account of any organization, firm 
or individual engaged in the business of dealing in differences on 
the fluctuations of the market price of cotton — commonly known as 
a bucket-shop — or for any one acting as agent for such organization, 
firm, corporation or individual, without a l)0?ia fide purchase and 
sale of property for an actual delivery, shall be deemed guilty of 
unmercantile conduct, which renders him unworthy to be a member 
of the Exchange, and upon conviction thereof shall be expelled 
from membership in the Exchange. 

Sec. 2. Any member of the Exchange may, on recommenda- 
tion of the Committee on Membership to the Board of Directors, 
for the first offense be fined not to exceed $250; for the second 
offense be suspended from the rights of membership for a term not 
exceeding one year, or may be expelled from membership of the 
Exchange, for publishing or permitting to be published, in his own 
name or that of his firm, or that of any of his partners, employees 
or agents, in newspapers, circulars, or otherwise, any advertisement 
that contains any mis-statement of facts or is otherwise calculated 
to mislead the public, whether by direct or implied misrepresenta- 
tion, or unfair concealment of facts, or that contains a request for 
money to be sent as margin for operating on discretionary orders, 
or any other matter that shall tend to bring discredit on the busi- 
ness of dealers or brokers in cotton, or upon the Exchange, or that 
shall have been disapproved by a majority of the Committee on 
Membership after such member shall have had an opportunity to 
be heard. 

Rule 19. Committees certifying to the election or non-elec- 
tion of applicants for membership shall report for posting in the 
Exchange only the fact whether or not the parties are elected, with- 
out giving the number of votes "for" or "against," but said votes 
shall be certified to for information of the Board of Directors, and 
made known to members only when desired. 



202 

EuLE 20. No continuous quotations of the New Orleans cot- 
ton future market shall be sent out from the floor of the New Or- 
leans Cotton Exchange, unless the party wlio sends said quotations 
shall have first applied and received the written permission of this 
Exchange; the said party furnishing names and addresses of re- 
cipients and such other particulars as may be required, under the 
same penalty for violation that applies under Eule 18. 

"Continuous Quotations," under this Eule, are quotations 
wherein the price of cotton shall be quoted of tener than at intervals 
of fifteen minutes. 



RULES OF ORDER 



AMENDMENT TO RULE 3 OF THE RULES OF ORDER OF 
THE NEW ORLEANS COTTON EXCHANGE. 

(Adopted by the Board of Directors May 4th, 1921; Posted 
May 4th; 1921; effective May 14th, 1921.) 

Add at the end of Enle 3 the following: 

Provided that on recommendation of the Floor Committee, the 
Committee on Membership shall investigate altercations or other 
misconduct between members and may in addition to fines im- 
posed by the Floor Committee recommend to the Board of Direc- 
tors susj^ension from the privileges of membership, or expulsion 
from membership in the Exchange. 

The Enle as amended will read as follows: 

Enle 3. Said Floor Committee shall fine any member nsing 
obscene language or epithets to or of another on the floor of the 
Exchange, and any parties who may engage in a personal alter- 
cation on the floor of the Exchange, the sum of Fifty (50) Dol- 
lars for each offense, with the privilege of increasing same — said 
increase, however, to be subject to approval by the Board of Di- 
rectors. 

Provided that on recommendation of the Floor Committee, the 
Committee on Membership shall investigate altercations or other 
misconduct between members and may in addition to fines imposed 
by the Floor Committee recommend to the Board of Directors 
suspension from the privileges of membership, or expulsion from 
membership in the Exchange. 



205 
RULES OF ORDER 



GENEEAL EULES. 

EuLE 1. The Floor Committee shall have general charge of 
the floors of the Exchange for the maintenance of order and de- 
corum, and for the prevention of angry disputes and difficulties 
between members while on said floors. 

EuLE 2. Said Floor Committee are authorized and empowered 
to institute fines for violation of decorum, at their discretion, from 
$5 to $25 for each offense, the same to be final. 

EuLE 3. Said Floor Committee shall fine any member using 
obscene language or epithets to or of another on the floor of the 
Exchange, and any parties who may engage in a personal alterca- 
tion on the floors of the Exchange, the sum of Fifty (50) Dollars 
for each offense, with the privilege of increasing the same — said in- 
crease, however, to be subject to approval by the Board of Directors, 

EuLE 4. Said Committee may, in their discretion, fine any 
member or members from $5 to $100 for each offense for marking 
in any manner with chalk or otherwise on the Exchange boards, or 
for altering any figures thereon, or in any way whatever interfer- 
ing with said boards, or for placing any document, circular or other 
paper on said boards, it being understood said boards are under the 
exclusive control of the President and Superintendent of the Ex- 
change in their respective official capacities. 

EuLE 5. Five members of the Floor Committee shall con- 
stitute a quorum thereof, which quorum shall be competent to en- 
force above provisions. 

EuLE 6. All fines instituted by the Floor Committee shall be 
entered on the books of the Treasurer of the Exchange as a regular 
charge against the party fined, and failure to pay the same within 
five legal days from notice thereof shall operate as a suspension from 
all the privileges of the Exchange of said party until payment is 
made. 



206 

BuLE 7. The Floor Committee are especially charged with 
carrying out the provisions of Rule relative to trading after hours. 

Rule 8. Smoking within the railing enclosing the ring or 
within the line of demarkation on the Carondelet Street side of 
the raised portion of the Exchange floor adjoining the future ring 
is prohibited under penalty of One Dollar for each offense. 

The Floor Committee are empowered to suspend the opera- 
tion of this rule at their option on due notice posted in the Ex- 
change room. 

Rule 9. All betting and offers to bet^ and all matching and 
offers to match, to fix prices for trades are prohibited, under penal- 
ties to be enforced by the Floor Committee, as provided for in 
violations of decorum. 

Rule 10. The provisions of these Rules of Order to apply 
equally to visiting members and others admitted to the floor of 
the Exchange. 

CALL RULES. 

The following are prohibited during the progress of the calls 
in the future room, viz. : 

1st. Standing in the arena directly in front of the caller. 

2d. Moving about the room, except when coming in or going 
out. 

3d. All trading or offering to trade in the lobby adjoining 
the ring. 

4th. All unnecessarily loud bidding or other violent demon- 
strations, and all bidding when the option is not on the floor. 

5th. Any conduct calculated to produce disorder. 

6th. All bids of any kind unless addressed to the caller. 

7th. All general conversation or discussion between members. 

8th. To ensure the prompt enforcement of above Rules, the 
Superintendent or any officer, or other party acting in his stead, is 
authorized and instructed, in his discretion, to fine from one to ten 



1 



1 



AMENDMENT TO SMOKING RULES. 



NEW OELEANS COTTON EXCHANGE. 

By resolution of the Board of Directors adopted January 28th, 
1920, Eule 8 of the Rules of Order has been amended to read as 
follows : 

Eule 8. — Smoking within the raised part of the Exchange 
Eoom adjoining the ring, including the telephone booths, is pro- 
hibited, except on the outer side of a line drawn on the Carondelet 
Street side of the room, during the hours set apart for the future 
business, under penalty of One Dollar for each offense. 

The Floor Committee are empowered to suspend the operation 
of this rule at their option, on due notice posted in the Exchange 
Eoom. 



rr 



207 

dollars, according to the gravity of the offense, any member deemed 
guilty of a violation of these regulations; provided, however, that 
any member may appeal from the decision of the officer to the Floor 
Committee ; but pending such appeal the member shall be required 
to pay any fine assessed before being admitted to the privileges of 
the room. 

9th. Any member wishing to obtain necessary and important 
information relative to his business then being transacted through 
the caller may address the Superintendent, or other officer acting 
in his stead, who should be required to, at once, furnish such in- 
formation, if in his judgment it is important it should be furnished 
on the spot ; provided, however, that the member shall use due dili- 
gence in keeping account of his own purchases and sales. 

10th. Each member of the Floor Committee is authorized and 
instructed to report any violation of the foregoing regulations, and 
the discipline should be administered by the officer in charge. 



PRESS SUPERVISION 



211 



PRESS SUPERVISION 



ANNUAL ELECTION OF SUPERVISOES. 

ELECTION OF CHIEF AND ASSISTANT SUPERVISORS. 

EuLE 1. The Board of Directors shall elect annually during 
the month of December a Chief Supervisor, an Assistant Chief 
Supervisor, and such number of Assistants as may be deemed neces- 
sary, to be employed by the month, who shall hold their respective 
offices at the pleasure of the Board. 

DUTIES OF PEESIDENT, COMMITTEE ON SUPEEVISION 
AND DELIVEEIES, AND OF SUPEEVISOES. 

DUTIES AND POWERS OF PRESIDENT OF EXCHANGE. 

EuLE 2. The President of the Exchange shall, in the interval 
between the regular days of meeting of the Board, be empowered 
to fill vacancies and to make such additional appointements as may, 
in his opinion, be necessary or advisable, for temporary service, at 
such rate of compensation as he may deem proper, but not to exceed 
the salary allowed to Assistant Supervisors. He shall also be em- 
powered to suspend the Chief or any of the Assistant Supervisors, 
for reasons to be communicated by him to the Board of Directors 
at their next meeting. 

DUTIES OF COMMITTEE ON SUPERVISION AND DELIVERIES. 

EuLE 3. The Committee on Supervision and Deliveries shaU 
have general charge of all matters appertaining to supervision and 
levee inspection not otherwise provided for in the Eules of the Ex- 
change. They shall take cognizance of all charges against members 
of the Exchange for violation of the Supervision or Levee Inspec- 



212 

tion Eules that may be reported by the Chief of those departments, 
and whenever, in their opinion, such charges are properly sub- 
stantiated, they shall refer the same to the Committee on Member- 
ship. They shall also constitute a board of reference for such mat- 
ters relating to supervision and levee inspection as the Board of 
Directors may deem necessary to have fully and properly digested 
before final action is had thereon; and to said committee shall be 
referred, unless otherwise ordered by the Board, all communications 
and suggestions from the Chief Supervisor. 

DUTIES OF CHIEF SUPERVISOR AND ASSIGNMENTS OF ASSISTANTS. 

EuLE 4. It shall be the duty of the Chief Supervisor to visit 
all the presses, to overlook his assistants and exercise such super- 
vision over matters relating to the cotton trade as may be neces- 
sary; he shall report all infractions of the rules and regulations of 
the Exchange to the President, and shall perform such other duties 
as may be required of him by these regulations or by a resolution 
of the Board. 

Under the direction of the Committee on Supervision and De- 
liveries he shall make all assignments of the Assistant Supervisors 
for duty at the various presses, and move such assistants from place 
to place, whenever the Committee deem such changes necessary or 
desirable ; such assignments and changes being always subject to the 
approval of the said Committee. 

He shall report direct to the Chairman of the Committee on 
Supervision and Deliveries upon all matters connected with his de- 
partment outside of his regular duties. 

He shall report at each monthly meeting of the Board the 
quantity of loose cotton made in, and the number of bales received 
and delivered by each press. 

The Assistant Chief Supervisor shall be a special assistant to 
the Chief, and shall replace tlie latter in event of his absence or 
sickness. 



213 



DUTIES OF ASSISTANT SUPERVISORS. 

EuLE 5. The Assistant Supervisors shall see that all loose 
cotton is gathered up and shall weigh the same, making a daily 
report to the Chief Supervisor of the quantity weighed and stored 
at each press. They shall weigh all samples carried away by the 
factors^ samplers or brokers' classers, giving a certificate in each 
case, if required, and keeping a record of same, showing all details. 
They shall see that all regulations established by this Exchange are 
properly enforced, and shall report all infractions of the same to 
the Chief Supervisor. They shall perform such other duties as may 
be prescribed by these regulations, or may be required of them by a 
resolution of the Board of Directors. 

SALARIES. 

EuLE 6. The Chief and Assistant Supervisors shall be paid 
such salaries as may from time to time* be fixed by the Board of 
Directors. 

SAMPLES AND LOOSE. 

factors' samples. 

EuLE 7. The weight of samples taken out by the factors' 
sampler shall not exceed eight-ounces per bale, and such samples shall 
not be removed from the press until weighed by the Assistant 
Supervisor, who shall keep a record of the weight of same, and if re- 
quired by the factor, shall furnish a certificate of same to the 
sampler. 

brokers' samples AXD CUTTING BANDS FOR SAMPLES. 

EuLE 8. The weight of samples taken out by the brokers' 
classer shall not exceed eight ounces per bale, and such samples shall 
not be removed from the press until weighed by the Assistant 
Supervisor, who shall keep a record of the same, and, if required, 
shall furnish the classer with a certificate stating the weight. . Cut- 
ting of bands on bales for the purpose of sampling is prohibited. 



214 



HOW SAMPLES MUST BE DRAWN. 

KuLE 9. The eight ounces allowed for a sample from each 
bale must be drawn in one sample unless samples are drawn from 
both sides of the bale. 

buyers' inspectors — DISPOSITION OF LOOSE. 

Rule 10. The buyers' inspector shall exhibit a certificate 
showing his authority to inspect the cotton. He shall replace all 
cotton taken from bales in boring and inspecting, and, should he fail 
to do so, it shall be gathered up, weighed and stored with the other 
loose cotton; but in no event shall it be removed from the press. 

loose made from sampling, etc. 

EuLE 11. All top samples and other loose cotton necessarily 
taken from the bales by the sellers' sampler or the brokers' classer, 
and all other loose cotton gathered up in the presses, shall be 
weighed and stored in the press; and the Supervisor shall report 
any sampler, classer or other person who may make more loose 
cotton than is necessary. 

It shall also be the duty of the Chief or Assistant Supervisor 
to report to the buyer or broker any classer who takes his samples 
into a junk shop or other shop or store, before taking them to the 
office of the buyer or broker. 

BALING LOOSE. 

Rule 12. The Chief and Assistant Supervisors shall have sole 
charge of all loose cotton, of whatever description, made in the 
presses, to be kept by them until there is sufficient quantity to make 
one or more bales, when they shall have it baled up, at such place 
as the owner or owners thereof may designate. After being baled 
up, it shall be returned to the press and stored subject to the order 
of the owner or owners thereof. All such cotton shall be weighed 
before leaving the press to be baled up, and shall be re-weighed 



215 

when returned to the press. The owner shall have the right to dis- 
pose of his loose cotton without having it baled, if he so desires; 
cotton to be weighed before leaving the press. 

LOOSE COTTON FOR TYPES. 

EuLE 13. Any buyer requiring loose cotton for the purpose 
of making up types shall deliver to the Supervisor an order signed 
by himself or by his regularly constituted attorney. He will then 
be allowed to take from the bales after they shall have been weighed 
the quantity required. The Supervisor shall weigh the cotton so 
taken and report the weight of same to the buyer. 

SUPERVISION FEES, ETC. 

EuLE 14. Each party storing cotton shall, on the first of each 
month, pay such amount per bale as may from time to time be fixed 
by the Board of Directors on all cotton received and stored by him 
during the preceding month, the amounts so paid to be kept by the 
Treasurer as a fund out of which to pay all expenses of supervision, 
including the cost of labor for gathering up the loose cotton. 

All shipmarked, small numbered, or other cotton sampled for 
re-sale in this market shall, upon re-sale, pay the regular super- 
vision fee. All forwarding cotton sampled in presses shall be sub- 
ject to this Eule. 

When cotton delivered in a press by planters' marks is hauled 
to another press and there sampled, it shall, on supervision, be sub- 
ject to an additional charge of one-half of the regular supervision 
fee ; provided, that should the owner or owners thereof turn over to 
the Exchange the loose made from such cotton, no such additional 
charge for supervision shall be made. 

Where cotton is sampled at the depots or elsewhere, not in 
presses, a charge of one-third of the supervision fee shall be paid by 
the owner or owners thereof; and the loose made shall be turned 
over to the owners, as is done in case of factors' cotton. 

The Superintendent of the Exchange shall report to the Com- 



216 

mittee on Supervision and Deliveries on all monthly bills not paid 
by the 25th of each month, and shall make such other reports re- 
lating to his collections as said Committee may from time to time 
require of him. 

Rule 15, In all cases of deliveries of cotton on Sunday, 
factors shall be required to pay the extra expenses for supervision 
and gathering loose, occasioned thereby. 

When a member of the Exchange sells cotton to a non-member, 
the seller shall guarantee to the Exchange the supervision and levee 
inspection fees. 

GENERAL PROVISIONS. 

RELATING TO TRANSACTIONS BETWEEN MEMBERS AND NON-MEMBERS. 

Rule 16. It shall be the duty of the Chief Supervisor to re- 
port all infringements of Rule 12 of the Spot Rules to the Com- 
mittee on Supervision and Deliveries, who shall refer such cases to 
the Committee on Membership. 

BENEFIT OF RULES ALLOWED TO NON-MEMBERS. 

Rule 17. Sellers and buyers who are not members of the Ex- 
change will be allowed all the benefits and protection of the regula- 
tions of this Exchange for supervision, provided they sign an agree- 
ment to be governed by them. 

RELATING TO PRESSES. 

STORAGE ROOM FOR LOOSE. 

Rule 18. The presses shall furnish, free of charge, suitable 
storage room for all loose cotton, and shall render such aid and 
assistance as may be necessary to enable the Supervisors to perform 
the duties assigned them. 

DUTIES OF PRESS OWNERS. 

Rule 19. It shall be the duty of the owners and managers of 
the presses to report to the President of the Exchange all such viola- 
tions of these rules and regulations as shall come under their per- 
sonal observation. 



LEVEE INSPECTION 



I 



219 
LEVEE INSPECTION* 



ANNUAL ELECTION OF LEVEE INSPECTORS. 

ELECTION AND TERM OF OFFICE FOR LEVEE INSPECTORS — SALARIES. 

Rule 1. The Chief Supervisor shall perform the duties of 
Chief Levee Inspector, and the Board of Directors shall elect an- 
nually during the month of December such number of assistnats for 
duty as Levee Inspectors as they may deem necessary, who shall be 
employed by the month, at such salaries as may from time to time 
be determined upon, and they shall hold their respective offices at 
the pleasure of the Board. 

DUTIES OF PRESIDENT AND LEVEE INSPECTORS. 

DUTIES AND POWERS OF PRESIDENT OF EXCHANGE. 

Rule 2. The President of the Exchange shall, in the interval 
between the regular days of meeting of the Board, be empowered 
to fill vacancies and to make such additional appointments as may 
in his opinion be necessary or advisable, for temporary service, at 
such rate of compensation as he may deem proper, but not to exceed 
the salary allowed to Assistant Levee Inspectors. He shall also be 
empowered to suspend the Chief or any of the Assistant Levee In- 
spectors, for reasons to be communicated by him to the Board of 
Directors at their next meeting. 

DUTIES OF LEVEE INSPECTORS. 

Rule 3. The duties of the Chief Supervisor and Assistant 
Levee Inspectors shall be to protect from theft all cotton on the 
levee and at depots, whether landed from steamers or railroads, in 
process of shipment or in transit through the city ; to see that cotton 
whilst being landed or in process of shipment is properly cared for, 
protected from the weather and kept out of the mud, and they shall 
perform such other duties as are imposed upon them by these regu^ 



220 

lations, or which may be required of them by a resolution of the 
Board of Directors, for the more effective protection of the cotton 
trade of this city. 

DAILY REPORTS. 

Rule 4. The Chief Supervisor and Assistant Levee Inspec- 
tors shall keep a record of the weather, also of the condition in 
\vhich cotton is delivered to the various vessels ; they shall also keep 
a record of the condition in which cotton is taken on board, speci- 
fying whether the same was taken on board in a wet or in a dry 
condition, and, if w^et, they shall specify whether the same was re- 
ceived wet or became so by being exposed to rain upon the levee, 
or by being rolled through the mud. They shall make daily re- 
ports, embodying all particulars, which reports shall be kept on file 
and shall be entered up in a book to be kept for that purpose by 
the Superintendent of the Exchange. 

DECK LOADS AND RECEIPT ON SHIPBOARD OF COTTON IN BAD 
CONDITION. 

EuLE 5. They shall in all cases, where cotton is being taken 
on board in such condition as to render it liable to become damaged 
upon the voyage, or to damage other cotton by contact, notify the 
master of the vessel of the impropriety and risk of taking cotton on 
board in such condition. They shall also report all cotton carried 
on deck by any vessels leaving this port. 

SKIDDING RECEIPTS BY STEAMBOATS. 

EuLE 6. Steamers landing cotton on the levee beyond the 
wooden wharves shall be required to place the same upon skids, so 
•as to prevent its coming in contact with mud or water, and it shall 
be the duty of the Chief Supervisor and of his assistants to report 
vail violations of this Eule. 

CERTIFICATES OF CONDITION TO BE FORWARDED TO PORTS OF 
DESTINATION. 

EuLE 7. It shall be the duty of the Chief Supervisor, when 



221 

a vessel clears at the Custom House, to draw up a certificate setting 
forth the condition in which her cargo was taken on board; and it 
shall be the duty of the Secretary of the Exchange to countersign 
such reports and affix thereto the seal of the Exchange. The Secre- 
tary shall forward such certificate to such person or association, at 
the port of destination, as the President or the Board of Directors 
may direct. 

MASTERS REFUSING REPORTS OF RECEIPTS^ ETC. 

EuLE 8, It shall be the duty of the Chief Supervisor to report 
all vessels whose masters refuse to furnish daily reports of cotton 
received, or who may refuse proper facilities to the Levee Inspectors 
for the performance of their duties; and the Secretary of the Ex- 
change shall post upon the Exchange boards the names of all vessels 
so reported; he shall also note all such cases upon the reports for- 
warded to the ports of destination of such vessels. 

INTERFERENCE V^ITH INSPECTORS ON DUTY. 

EuLE 9. Any one forcibly interfering with the Levee Inspec- 
tors while in the discharge of their duties shall be prosecuted ac- 
cording to law. 

CHIEF SUPERVISOR'S REPORTS TO COMMITTEE ON SUPERVISION 
AND DELIVERIES. 

EuLE 10. The Chief Supervisor shall report^ direct to the 
Chairman of the Committee on Supervision and Deliveries upon 
all matters connected with his department, outside of his regular 
routine duties. 

CERTIFICATE OF COTTON UNFIT FOR SHIPMENT. 

EuLE 11. In any case where cotton has been taken on board 
of a vessel in condition unfit for shipment, any shipper by said 
vessel shall receive, if he so requires, a special certificate from the 
Exchange, setting forth the facts of the case, said certificate to be 



222 

verified by oath or affirmation of the Levee Inspector in charge of 
said vessel. Shippers requiring special certificates shall pay all 
expenses incurred under this Eule. 

INSPECTION FEES AND CHAEGES. 

FEES OX LOCAL SHIPMENTS DUTIES OF COLLECTOR. 

EuLE 12. Each shipper of cotton shall, on the first of each 
month, pay to the Treasurer of this Exchange such amount as may 
from time to time be fixed by the Board of Directors for each and 
every bale of cotton shipped by him during the preceding month. 

In all cases where a broker is employed, such payment may be 
made through the broker, but where parties purchase cotton vrith- 
out the intervention of a broker such payment shall be made direct. 
The amount so paid shall be kept by the Treasurer as a fund out 
of which to defray all expenses incurred under the regulations for 
the protection of cotton upon the levee. The Superintendent of the 
Exchange shall report to the Committee on Supervision and De- 
liveries on all monthly bills not paid by the 35th of each month, and 
shall make such other reports relating to his collections as said 
Committee may from time to time require of him. 

FEES ON TRANSIT COTTON. 

EuLE 13. Each shipper shall report monthly the number of 
bales of cotton received by him and shipped without being sent to 
presses; all such cotton being liable to the levee inspection assess- 
ment. 

GENEEAL PEOYISIONS. 

BENEFIT OF RULES ALLOWED TO NON-MEMBERS. 

EuLE 14. Sellers and buyers who are not members of the Ex- 
change will be allowed the benefit and protection of the regulations 
of this Exchange for levee inspection, provided they sign an agree- 
ment to be governed by them. 



RULES RELATING TO 
STANDARD OF COMPRESSING 



225 



RULES RELATING TO STANDARD OF COM- 
PRESSING AND SIZE AND CONDITION 
OF BALES FOR EXPORT 



EuLE 1. Each bale shall be delivered to vessel with not less 
than six bands, and in proper shape. The bands shall be placed at 
about equal distances from each other; no band to be allowed so 
near the end of the bale as to be insecure. 

EuLE 2. The following Eule shall be strictly adhered to in 
measuring a bale of cotton : measurement shall be taken on the 
bands for width and thickness, and from both ends of the bale for 
length. 

Eule 3. The ship agent shall not be required to accept pick- 
er}' bales or bales with less than six bands. 

Eule 4. Hand-tied bales shall not be rejected except for lack 
of required densit}^ 

Eule 5. The Inspectors of the Cotton Exchange shall be 
sworn to a fair and impartial performance of their duties, and all 
certificates issued or certified to by them shall be under such oaths 
as sworn Inspectors, and no member of the Cotton Exchange shall 
be required to accept certificates of condemnation issued by the 
Xew Orleans Steamship Association, unless such certificates are 
signed by the sworn Inspectors of such Association. The shippers, 
the ship agents, or the representatives of either, shall have free 
access to the records of the Inspectors of both the Cotton Exchange 
and the Xew Orleans Steamship Association. 

In all cases where cotton is condemned by Inspectors of the 
Xew Orleans Steamship Association, the shipper shall have the 
right of being represented by an Inspector of the Xew Orleans 
Cotton Exchange at the time of condemnation. 

Provided, that if the shipper does not take prompt steps to. 



226 

liave the ship agents' certificate of condemnation verified by the 
Inspectors of the Cotton Exchange, such certificates shall be ac- 
cepted without question. 

Rule 6. All cotton re-marked in New Orleans must, in ad- 
dition to the mark, bear a number on each bale. 

Rule 7. Certificates of condemnation must show, when 
visible, shipping marks and numbers and tags carried by the bales, 
but no shipper shall reject certificates because of the absence of this 
information. 

The following regulations of the New Orleans Steamship As- 
sociation have been adopted by the New Orleans Cotton Exchange : 

"The Standard size of gin boxes is to be 27x54 inches, and an 
extra charge of $1.00 per bale on cotton and cotton linters will be 
made for ocean freight on all bales from boxes of greater length or 
width than the above size. 

"Each and every bale of cotton and cotton linters must be com- 
pletely covered with bagging to protect the cotton from damage. 

"No Dock receipts, Mate's receipts, Master's receipts. Agent's 
receipts, nor Bills of Lading will be issued without describing 
actual condition of the bales of cotton or linters, when received by 
the ocean carrier. Any bales delivered in other than apparent good 
order and condition will be signed for accordingly. 

"The following clauses descriptive of bales of cotton or linters 
will be used on receipts and bills of lading when such deficiencies 
exist : 

"1. Not thoroughly covered. 

"2. Covering insufficient to retain marks. 

"3. More or less wet. 

"4. More or less stained. 

"5. More or less soiled. 

"Bales of cotton or cotton linters tendered for shipment wet 
and subsequently allowed to dry out^ will be claused as "Bales have 
been wet and dried." 



227 

"The Standard size bale, 27x54 inches, is the basis of the 
freight engagement with ocean carriers, and each and every bale of 
cotton and cotton linters from gin boxes not exceeding 27x54 inches 
must, on delivery to the steamer at the port, contain a minimum 
density of 22% pounds to the cubic foot. Any bale of these dimen- 
sions that does not show this density, if not re-pressed to the re- 
quired density at the port, shall pay extra freight to the steamer 
of 50 cents per bale. 

"Each and every bale of cotton and cotton linters must be 
durably and legibly marked or branded. Marks to be placed be- 
tween bands so that no part of the mark will be covered by the 
band. iSTo other mark allowed upon the bale, except head brand (if 
any), and the mark under which the bale is moving for export. All 
other marks to be thoroughly obliterated so that no part of any old 
mark will appear. Upon round bales the gin mark will be allowed 
to remain. 

"When the quality of the bagging is insufficient to carry the 
marks to destination, a patch of good bagging or cloth should be 
put on the bale, under the bands, to bear the mark." 



228 



FORM OF AUTHORIZATION TO VISIT EXCHANGE. 
Under Article XVI of the By-Laws. 

.19. 



M 

Superintendent New Orleans Cotton Exchange. 

Sir— 

You are hereby notified that , my bona 

fide clerk, is authorized to visit the Cotton Exchange during my absence 
from the city (or sickness) for the sole purpose of obtaining news or 
information. Eespectfully, 



GENERAL POWER OF ATTORNEY. 

New Orleans Cotton Exchange. 

Under Article XVI of the By-Laws. 

United States of America, 

State of Louisiana, Parish of Orleans, 

City of New Orleans. 

19 

Known All Men by These Presents: 

That of do hereby 

constitute, and appoint, and by these presents do make^ constitute and 

appoint , of true and 

lawful attorney to represent , 

in the transaction of all business in the New Orleans Cotton Exchange 

for and in stead, to 

perform all necessary acts as hereinbefore stated, in accordance with the 

By-Laws and Rules of the Exchange, which might 

legally do; hereby ratifying and confirming in all respects the act or acts 

of said attorney as fully as 

could do if personally present, and this power 

shall remain in full force and effect until after expiration of twenty-four 
hours from the date of the posting upon the bulletin board of the Ex- 
change Room, by the Superintendent thereof, a notice of the revocation 
of same. 

Witness: 



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iiS,f!:!!}l.P^ CONGRESS 



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